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Income Tax Forms 2010

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Income Tax Forms 2010

Income tax forms 2010 Index A Adjusted basis defined, Adjusted basis defined. Income tax forms 2010 Administrative or management activities, Administrative or management activities. Income tax forms 2010 Assistance (see Tax help) Attorneys, Place To Meet Patients, Clients, or Customers B Business expenses not for use of home, Business expenses not for use of your home. Income tax forms 2010 Business furniture and equipment, Business Furniture and Equipment Business percentage, Business Percentage Business use of the home requirements (see Qualifying for a deduction) C Carryover of expenses, Carryover of unallowed expenses. Income tax forms 2010 Casualty losses, Casualty losses. Income tax forms 2010 Child and Adult Care Food Program reimbursements, Meals. Income tax forms 2010 Computer Listed property, Listed Property D Daycare facilities, Daycare Facility, Standard meal and snack rates. Income tax forms 2010 (see also Family daycare providers) Eligible children for standard meal and snack rates, Standard meal and snack rates. Income tax forms 2010 Exceptions for regular use requirement, Daycare Facility Family daycare, Standard meal and snack rates. Income tax forms 2010 Family daycare provider, Standard meal and snack rates. Income tax forms 2010 Meals, Meals. Income tax forms 2010 , Standard meal and snack rates. Income tax forms 2010 Regular use, Daycare Facility Standard meal and snack rates, Meals. Income tax forms 2010 , Standard meal and snack rates. Income tax forms 2010 Deduction limit, Deduction Limit Deduction requirements Employee use, Additional tests for employee use. Income tax forms 2010 Exceptions to exclusive use, Exceptions to Exclusive Use Exclusive use, Exclusive Use More than one trade or business, More Than One Trade or Business Place to meet clients, Place To Meet Patients, Clients, or Customers Principal place of business, Principal Place of Business Regular use, Regular Use Separate structure, Separate Structure Storage of inventory or product samples, Storage of inventory or product samples. Income tax forms 2010 Trade or business use, Trade or Business Use Deductions Figuring, Figuring the Deduction, Part 2—Figure Your Allowable Deduction Limit, Deduction Limit Part-year use, Part-year use. Income tax forms 2010 Qualifying for, Qualifying for a Deduction, Separate Structure Rental to employer, Rental to employer. Income tax forms 2010 Unreimbursed partnership expenses, Deducting unreimbursed partnership expenses. Income tax forms 2010 Using Actual Expenses, Using Actual Expenses Dentists, Place To Meet Patients, Clients, or Customers Depreciation, Property Bought for Business Use 5-year property, Depreciation 7-year property, Depreciation Adjusted basis, Adjusted basis defined. Income tax forms 2010 Fair market value, Fair market value defined. Income tax forms 2010 Figuring depreciation for the current year, Figuring the depreciation deduction for the current year. Income tax forms 2010 Furniture and equipment, Business Furniture and Equipment, Depreciation Home, Depreciating Your Home Nonresidential real property, Figuring the depreciation deduction for the current year. Income tax forms 2010 Percentage table for 39-year nonresidential real property, Depreciation table. Income tax forms 2010 Permanent improvements, Permanent improvements. Income tax forms 2010 , Depreciating permanent improvements. Income tax forms 2010 Depreciation of home, Depreciating Your Home Basis adjustment, Basis Adjustment MACRS (Table 2), Depreciation table. Income tax forms 2010 Property bought for business use, Depreciation Sale or exchange of home, Depreciation Doctors, Place To Meet Patients, Clients, or Customers E Employee use of home, Additional tests for employee use. Income tax forms 2010 Employees Adequately accounting to employer, Adequately accounting to employer. Income tax forms 2010 Casualty losses, Casualty losses. Income tax forms 2010 Mortgage interest, Deductible mortgage interest. Income tax forms 2010 Other expenses, Other expenses. Income tax forms 2010 Real estate taxes, Real estate taxes. Income tax forms 2010 Exclusive use, Exclusive Use Expenses Casualty losses, Casualty losses. Income tax forms 2010 Direct, Actual Expenses Indirect, Actual Expenses Insurance, Insurance. Income tax forms 2010 Mortgage interest, Deductible mortgage interest. Income tax forms 2010 , Qualified mortgage insurance premiums. Income tax forms 2010 Real estate taxes, Real estate taxes. Income tax forms 2010 Related to tax-exempt income, Expenses related to tax-exempt income. Income tax forms 2010 Rent, Rent. Income tax forms 2010 Repairs, Repairs. Income tax forms 2010 Security system, Security system. Income tax forms 2010 Telephone, Telephone. Income tax forms 2010 Types of, Actual Expenses Unrelated, Actual Expenses Utilities and services, Utilities and services. Income tax forms 2010 Where to deduct, Where To Deduct F Fair market value, Fair market value defined. Income tax forms 2010 Family daycare providers Meal and snack log (Exhibit A), Standard meal and snack rates. Income tax forms 2010 Standard meal and snack rates, Standard meal and snack rates. Income tax forms 2010 Standard meal and snack rates (Table 3), Standard meal and snack rates. Income tax forms 2010 Figuring the deduction Business percentage, Business Percentage Deduction limit, Deduction Limit Form, Useful Items - You may want to see:, Self-Employed Persons, Real estate taxes. Income tax forms 2010 1040, Schedule F, Casualty losses. Income tax forms 2010 2106, Employees 4562, Reporting and recordkeeping requirements. Income tax forms 2010 4684, Casualty losses. Income tax forms 2010 8829, Actual Expenses, Casualty losses. Income tax forms 2010 , Business Percentage, Daycare Facility W-2 Reimbursed expenses, Employees Free tax services, Free help with your tax return. Income tax forms 2010 Furniture and equipment, Business Furniture and Equipment H Help (see Tax help) Home Business percentage, Business Percentage Depreciation, Depreciating Your Home Sale of, Sale or Exchange of Your Home Home expenses, Can you deduct business use of, Figure A, , Principal Place of Business I Improvements (see Permanent improvements) Insurance, Insurance. Income tax forms 2010 Inventory, storage of, Storage of inventory or product samples. Income tax forms 2010 L Listed property Computers, Listed Property Defined, Listed Property Employee requirements, Employee. Income tax forms 2010 Reporting and recordkeeping requirements, Reporting and recordkeeping requirements. Income tax forms 2010 Years following the year placed in service, Years following the year placed in service. Income tax forms 2010 M MACRS percentage table 39-year nonresidential real property, Depreciation table. Income tax forms 2010 Meals, Meals. Income tax forms 2010 Meeting with patients, clients, or customers on premises, Place To Meet Patients, Clients, or Customers More than one place of business, More than one place of business. Income tax forms 2010 More than one trade or business, More Than One Trade or Business More-than-50%-use test, More-than-50%-use test. Income tax forms 2010 Mortgage interest, Deductible mortgage interest. Income tax forms 2010 , Qualified mortgage insurance premiums. Income tax forms 2010 P Partners, Partners Partnership expenses, unreimbursed, Deducting unreimbursed partnership expenses. Income tax forms 2010 Permanent improvements, Permanent improvements. Income tax forms 2010 , Depreciating permanent improvements. Income tax forms 2010 Personal property converted to business use, Personal Property Converted to Business Use Place of business, more than one, More than one place of business. Income tax forms 2010 Principal place of business, Principal Place of Business Product samples, Storage of inventory or product samples. Income tax forms 2010 Property bought for business use Depreciation, Depreciation Section 179 deduction, Property Bought for Business Use, Section 179 Deduction Property converted to business use, Personal, Personal Property Converted to Business Use Publications, Useful Items - You may want to see: (see Tax help) Q Qualifying for a deduction, Qualifying for a Deduction R Real estate taxes, Real estate taxes. Income tax forms 2010 Recordkeeping, Recordkeeping Recordkeeping requirements Business furniture and equipment, Reporting and recordkeeping requirements. Income tax forms 2010 Family daycare provider meal and snack log (Exhibit A), Standard meal and snack rates. Income tax forms 2010 Regular use, Regular Use Reminders, Reminders Rent, Rent. Income tax forms 2010 Repairs, Repairs. Income tax forms 2010 Reporting requirements Business furniture and equipment, Reporting and recordkeeping requirements. Income tax forms 2010 S Sale or exchange of your home, Sale or Exchange of Your Home Basis adjustment, Basis Adjustment Depreciation taken, Depreciation Ownership and use tests, Ownership and use tests. Income tax forms 2010 Section 179, Section 179 Deduction Furniture and equipment, Business Furniture and Equipment, Listed Property Listed property, Business Furniture and Equipment, Listed Property Personal property converted to business use, Personal Property Converted to Business Use Property bought for business use, Property Bought for Business Use Security system, Security system. Income tax forms 2010 Self-employed persons Deduction of expenses, Self-Employed Persons Separate structure, Separate Structure Simplified Method Actual expenses and depreciation of your home, Actual expenses and depreciation of your home. Income tax forms 2010 Allowable area, Allowable area. Income tax forms 2010 Business expenses not related to use of the home, Business expenses not related to use of the home. Income tax forms 2010 Electing the simplified method, Electing the Simplified Method More than one home, More than one home. Income tax forms 2010 More than one qualified business use, More than one qualified business use. Income tax forms 2010 Shared use, Shared use. Income tax forms 2010 Expenses deductible without regard to business use, Expenses deductible without regard to business use. Income tax forms 2010 No carryover of unallowed expenses, No deduction of carryover of actual expenses. Income tax forms 2010 Simplified amount, Simplified Amount Space used regularly for daycare, Space used regularly for daycare. Income tax forms 2010 Using the simplified method, Using the Simplified Method Standard meal and snack rates, Standard meal and snack rates. Income tax forms 2010 Storage of inventory, Storage of inventory or product samples. Income tax forms 2010 T Tables and figures MACRS Depreciation of home (Table 2), Depreciation table. Income tax forms 2010 Qualifying for deduction (Figure A), Standard meal and snack rates (Table 3), Table 3. Income tax forms 2010 Standard Meal and Snack Rates1 Types of expenses (Table 1), Actual Expenses Tax help, How To Get Tax Help Telephone, Telephone. Income tax forms 2010 Trade or business use, Trade or Business Use TTY/TDD information, How To Get Tax Help Types of expenses, Actual Expenses U Utilities, Utilities and services. Income tax forms 2010 W Where to deduct expenses, Where To Deduct Employees, Employees Self-employed, Self-Employed Persons Worksheets Area Adjustment Worksheet (for simplified method), Area Adjustment Worksheet (for simplified method) Worksheets to figure the deduction for business use of your home (simplified method), Worksheets To Figure the Deduction for Business Use of Your Home (Simplified Method) Daycare facility worksheet (for simplified method), Daycare Facility Worksheet (for simplified method) Simplified method worksheet, Simplified Method Worksheet Prev  Up     Home   More Online Publications
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The Income Tax Forms 2010

Income tax forms 2010 22. Income tax forms 2010   Taxes Table of Contents IntroductionIndian tribal government. Income tax forms 2010 Useful Items - You may want to see: Tests To Deduct Any Tax Income TaxesState and Local Income Taxes Foreign Income Taxes General Sales TaxesMotor vehicles. Income tax forms 2010 Real Estate TaxesReal estate taxes for prior years. Income tax forms 2010 Examples. Income tax forms 2010 Form 1099-S. Income tax forms 2010 Real Estate-Related Items You Cannot Deduct Personal Property Taxes Taxes and Fees You Cannot Deduct Where To Deduct Introduction This chapter discusses which taxes you can deduct if you itemize deductions on Schedule A (Form 1040). Income tax forms 2010 It also explains which taxes you can deduct on other schedules or forms and which taxes you cannot deduct. Income tax forms 2010 This chapter covers the following topics. Income tax forms 2010 Income taxes (federal, state, local, and foreign). Income tax forms 2010 General sales taxes (state and local). Income tax forms 2010 Real estate taxes (state, local, and foreign). Income tax forms 2010 Personal property taxes (state and local). Income tax forms 2010 Taxes and fees you cannot deduct. Income tax forms 2010 Use Table 22-1 as a guide to determine which taxes you can deduct. Income tax forms 2010 The end of the chapter contains a section that explains which forms you use to deduct different types of taxes. Income tax forms 2010 Business taxes. Income tax forms 2010   You can deduct certain taxes only if they are ordinary and necessary expenses of your trade or business or of producing income. Income tax forms 2010 For information on these taxes, see Publication 535, Business Expenses. Income tax forms 2010 State or local taxes. Income tax forms 2010   These are taxes imposed by the 50 states, U. Income tax forms 2010 S. Income tax forms 2010 possessions, or any of their political subdivisions (such as a county or city), or by the District of Columbia. Income tax forms 2010 Indian tribal government. Income tax forms 2010   An Indian tribal government recognized by the Secretary of the Treasury as performing substantial government functions will be treated as a state for purposes of claiming a deduction for taxes. Income tax forms 2010 Income taxes, real estate taxes, and personal property taxes imposed by that Indian tribal government (or by any of its subdivisions that are treated as political subdivisions of a state) are deductible. Income tax forms 2010 General sales taxes. Income tax forms 2010   These are taxes imposed at one rate on retail sales of a broad range of classes of items. Income tax forms 2010 Foreign taxes. Income tax forms 2010   These are taxes imposed by a foreign country or any of its political subdivisions. Income tax forms 2010 Useful Items - You may want to see: Publication 514 Foreign Tax Credit for Individuals 530 Tax Information for Homeowners Form (and Instructions) Schedule A (Form 1040) Itemized Deductions Schedule E (Form 1040) Supplemental Income and Loss 1116 Foreign Tax Credit Tests To Deduct Any Tax The following two tests must be met for you to deduct any tax. Income tax forms 2010 The tax must be imposed on you. Income tax forms 2010 You must pay the tax during your tax year. Income tax forms 2010 The tax must be imposed on you. Income tax forms 2010   In general, you can deduct only taxes imposed on you. Income tax forms 2010   Generally, you can deduct property taxes only if you are an owner of the property. Income tax forms 2010 If your spouse owns the property and pays the real estate taxes, the taxes are deductible on your spouse's separate return or on your joint return. Income tax forms 2010 You must pay the tax during your tax year. Income tax forms 2010   If you are a cash basis taxpayer, you can deduct only those taxes you actually paid during your tax year. Income tax forms 2010 If you pay your taxes by check, the day you mail or deliver the check is the date of payment, provided the check is honored by the financial institution. Income tax forms 2010 If you use a pay-by-phone account (such as a credit card or electronic funds withdrawal), the date reported on the statement of the financial institution showing when payment was made is the date of payment. Income tax forms 2010 If you contest a tax liability and are a cash basis taxpayer, you can deduct the tax only in the year you actually pay it (or transfer money or other property to provide for satisfaction of the contested liability). Income tax forms 2010 See Publication 538, Accounting Periods and Methods, for details. Income tax forms 2010    If you use an accrual method of accounting, see Publication 538 for more information. Income tax forms 2010 Income Taxes This section discusses the deductibility of state and local income taxes (including employee contributions to state benefit funds) and foreign income taxes. Income tax forms 2010 State and Local Income Taxes You can deduct state and local income taxes. Income tax forms 2010 However, you can elect to deduct state and local general sales taxes instead of state and local income taxes. Income tax forms 2010 See General Sales Taxes , later. Income tax forms 2010 Exception. Income tax forms 2010    You cannot deduct state and local income taxes you pay on income that is exempt from federal income tax, unless the exempt income is interest income. Income tax forms 2010 For example, you cannot deduct the part of a state's income tax that is on a cost-of-living allowance exempt from federal income tax. Income tax forms 2010 What To Deduct Your deduction may be for withheld taxes, estimated tax payments, or other tax payments as follows. Income tax forms 2010 Withheld taxes. Income tax forms 2010   You can deduct state and local income taxes withheld from your salary in the year they are withheld. Income tax forms 2010 Your Form(s) W-2 will show these amounts. Income tax forms 2010 Forms W-2G, 1099-G, 1099-R, and 1099-MISC may also show state and local income taxes withheld. Income tax forms 2010 Estimated tax payments. Income tax forms 2010   You can deduct estimated tax payments you made during the year to a state or local government. Income tax forms 2010 However, you must have a reasonable basis for making the estimated tax payments. Income tax forms 2010 Any estimated state or local tax payments that are not made in good faith at the time of payment are not deductible. Income tax forms 2010 For example, you made an estimated state income tax payment. Income tax forms 2010 However, the estimate of your state tax liability shows that you will get a refund of the full amount of your estimated payment. Income tax forms 2010 You had no reasonable basis to believe you had any additional liability for state income taxes and you cannot deduct the estimated tax payment. Income tax forms 2010 Refund applied to taxes. Income tax forms 2010   You can deduct any part of a refund of prior-year state or local income taxes that you chose to have credited to your 2013 estimated state or local income taxes. Income tax forms 2010    Do not reduce your deduction by either of the following items. Income tax forms 2010 Any state or local income tax refund (or credit) you expect to receive for 2013. Income tax forms 2010 Any refund of (or credit for) prior-year state and local income taxes you actually received in 2013. Income tax forms 2010   However, part or all of this refund (or credit) may be taxable. Income tax forms 2010 See Refund (or credit) of state or local income taxes , later. Income tax forms 2010 Separate federal returns. Income tax forms 2010   If you and your spouse file separate state, local, and federal income tax returns, you each can deduct on your federal return only the amount of your own state and local income tax that you paid during the tax year. Income tax forms 2010 Joint state and local returns. Income tax forms 2010   If you and your spouse file joint state and local returns and separate federal returns, each of you can deduct on your separate federal return a part of the total state and local income taxes paid during the tax year. Income tax forms 2010 You can deduct only the amount of the total taxes that is proportionate to your gross income compared to the combined gross income of you and your spouse. Income tax forms 2010 However, you cannot deduct more than the amount you actually paid during the year. Income tax forms 2010 You can avoid this calculation if you and your spouse are jointly and individually liable for the full amount of the state and local income taxes. Income tax forms 2010 If so, you and your spouse can deduct on your separate federal returns the amount you each actually paid. Income tax forms 2010 Joint federal return. Income tax forms 2010   If you file a joint federal return, you can deduct the total of the state and local income taxes both of you paid. Income tax forms 2010 Contributions to state benefit funds. Income tax forms 2010    As an employee, you can deduct mandatory contributions to state benefit funds withheld from your wages that provide protection against loss of wages. Income tax forms 2010 For example, certain states require employees to make contributions to state funds providing disability or unemployment insurance benefits. Income tax forms 2010 Mandatory payments made to the following state benefit funds are deductible as state income taxes on Schedule A (Form 1040), line 5. Income tax forms 2010 Alaska Unemployment Compensation Fund. Income tax forms 2010 California Nonoccupational Disability Benefit Fund. Income tax forms 2010 New Jersey Nonoccupational Disability Benefit Fund. Income tax forms 2010 New Jersey Unemployment Compensation Fund. Income tax forms 2010 New York Nonoccupational Disability Benefit Fund. Income tax forms 2010 Pennsylvania Unemployment Compensation Fund. Income tax forms 2010 Rhode Island Temporary Disability Benefit Fund. Income tax forms 2010 Washington State Supplemental Workmen's Compensation Fund. Income tax forms 2010    Employee contributions to private or voluntary disability plans are not deductible. Income tax forms 2010 Refund (or credit) of state or local income taxes. Income tax forms 2010   If you receive a refund of (or credit for) state or local income taxes in a year after the year in which you paid them, you may have to include the refund in income on Form 1040, line 10, in the year you receive it. Income tax forms 2010 This includes refunds resulting from taxes that were overwithheld, applied from a prior year return, not figured correctly, or figured again because of an amended return. Income tax forms 2010 If you did not itemize your deductions in the previous year, do not include the refund in income. Income tax forms 2010 If you deducted the taxes in the previous year, include all or part of the refund on Form 1040, line 10, in the year you receive the refund. Income tax forms 2010 For a discussion of how much to include, see Recoveries in chapter 12. Income tax forms 2010 Foreign Income Taxes Generally, you can take either a deduction or a credit for income taxes imposed on you by a foreign country or a U. Income tax forms 2010 S. Income tax forms 2010 possession. Income tax forms 2010 However, you cannot take a deduction or credit for foreign income taxes paid on income that is exempt from U. Income tax forms 2010 S. Income tax forms 2010 tax under the foreign earned income exclusion or the foreign housing exclusion. Income tax forms 2010 For information on these exclusions, see Publication 54, Tax Guide for U. Income tax forms 2010 S. Income tax forms 2010 Citizens and Resident Aliens Abroad. Income tax forms 2010 For information on the foreign tax credit, see Publication 514. Income tax forms 2010 General Sales Taxes You can elect to deduct state and local general sales taxes, instead of state and local income taxes, as an itemized deduction on Schedule A (Form 1040), line 5b. Income tax forms 2010 You can use either your actual expenses or the state and local sales tax tables to figure your sales tax deduction. Income tax forms 2010 Actual expenses. Income tax forms 2010   Generally, you can deduct the actual state and local general sales taxes (including compensating use taxes) if the tax rate was the same as the general sales tax rate. Income tax forms 2010 However, sales taxes on food, clothing, medical supplies, and motor vehicles are deductible as a general sales tax even if the tax rate was less than the general sales tax rate. Income tax forms 2010 If you paid sales tax on a motor vehicle at a rate higher than the general sales tax rate, you can deduct only the amount of tax that you would have paid at the general sales tax rate on that vehicle. Income tax forms 2010 If you use the actual expenses method, you must have receipts to show the general sales taxes paid. Income tax forms 2010 Do not include sales taxes paid on items used in your trade or business. Income tax forms 2010 Motor vehicles. Income tax forms 2010   For purposes of this section, motor vehicles include cars, motorcycles, motor homes, recreational vehicles, sport utility vehicles, trucks, vans, and off-road vehicles. Income tax forms 2010 This also includes sales taxes on a leased motor vehicle, but not on vehicles used in your trade or business. Income tax forms 2010 Optional sales tax tables. Income tax forms 2010   Instead of using your actual expenses, you can figure your state and local general sales tax deduction using the state and local sales tax tables in the Instructions for Schedule A (Form 1040). Income tax forms 2010 You may also be able to add the state and local general sales taxes paid on certain specified items. Income tax forms 2010   Your applicable table amount is based on the state where you live, your income, and the number of exemptions claimed on your tax return. Income tax forms 2010 Your income is your adjusted gross income plus any nontaxable items such as the following. Income tax forms 2010 Tax-exempt interest. Income tax forms 2010 Veterans' benefits. Income tax forms 2010 Nontaxable combat pay. Income tax forms 2010 Workers' compensation. Income tax forms 2010 Nontaxable part of social security and railroad retirement benefits. Income tax forms 2010 Nontaxable part of IRA, pension, or annuity distributions, excluding rollovers. Income tax forms 2010 Public assistance payments. Income tax forms 2010 If you lived in different states during the same tax year, you must prorate your applicable table amount for each state based on the days you lived in each state. Income tax forms 2010 See the Instructions for Schedule A (Form 1040), line 5, for details. Income tax forms 2010 Real Estate Taxes Deductible real estate taxes are any state, local, or foreign taxes on real property levied for the general public welfare. Income tax forms 2010 You can deduct these taxes only if they are based on the assessed value of the real property and charged uniformly against all property under the jurisdiction of the taxing authority. Income tax forms 2010 Deductible real estate taxes generally do not include taxes charged for local benefits and improvements that increase the value of the property. Income tax forms 2010 They also do not include itemized charges for services (such as trash collection) assessed against specific property or certain people, even if the charge is paid to the taxing authority. Income tax forms 2010 For more information about taxes and charges that are not deductible, see Real Estate-Related Items You Cannot Deduct , later. Income tax forms 2010 Tenant-shareholders in a cooperative housing corporation. Income tax forms 2010   Generally, if you are a tenant-stockholder in a cooperative housing corporation, you can deduct the amount paid to the corporation that represents your share of the real estate taxes the corporation paid or incurred for your dwelling unit. Income tax forms 2010 The corporation should provide you with a statement showing your share of the taxes. Income tax forms 2010 For more information, see Special Rules for Cooperatives in Publication 530. Income tax forms 2010 Division of real estate taxes between buyers and sellers. Income tax forms 2010   If you bought or sold real estate during the year, the real estate taxes must be divided between the buyer and the seller. Income tax forms 2010   The buyer and the seller must divide the real estate taxes according to the number of days in the real property tax year (the period to which the tax is imposed relates) that each owned the property. Income tax forms 2010 The seller is treated as paying the taxes up to, but not including, the date of sale. Income tax forms 2010 The buyer is treated as paying the taxes beginning with the date of sale. Income tax forms 2010 This applies regardless of the lien dates under local law. Income tax forms 2010 Generally, this information is included on the settlement statement provided at the closing. Income tax forms 2010    If you (the seller) cannot deduct taxes until they are paid because you use the cash method of accounting, and the buyer of your property is personally liable for the tax, you are considered to have paid your part of the tax at the time of the sale. Income tax forms 2010 This lets you deduct the part of the tax to the date of sale even though you did not actually pay it. Income tax forms 2010 However, you must also include the amount of that tax in the selling price of the property. Income tax forms 2010 The buyer must include the same amount in his or her cost of the property. Income tax forms 2010   You figure your deduction for taxes on each property bought or sold during the real property tax year as follows. Income tax forms 2010 Worksheet 22-1. Income tax forms 2010 Figuring Your Real Estate Tax Deduction 1. Income tax forms 2010 Enter the total real estate taxes for the real property tax year   2. Income tax forms 2010 Enter the number of days in the real property tax year that you owned the property   3. Income tax forms 2010 Divide line 2 by 365 (for leap years, divide line 2 by 366) . Income tax forms 2010 4. Income tax forms 2010 Multiply line 1 by line 3. Income tax forms 2010 This is your deduction. Income tax forms 2010 Enter it on Schedule A (Form 1040), line 6   Note. Income tax forms 2010 Repeat steps 1 through 4 for each property you bought or sold during the real property tax year. Income tax forms 2010 Your total deduction is the sum of the line 4 amounts for all of the properties. Income tax forms 2010 Real estate taxes for prior years. Income tax forms 2010   Do not divide delinquent taxes between the buyer and seller if the taxes are for any real property tax year before the one in which the property is sold. Income tax forms 2010 Even if the buyer agrees to pay the delinquent taxes, the buyer cannot deduct them. Income tax forms 2010 The buyer must add them to the cost of the property. Income tax forms 2010 The seller can deduct these taxes paid by the buyer. Income tax forms 2010 However, the seller must include them in the selling price. Income tax forms 2010 Examples. Income tax forms 2010   The following examples illustrate how real estate taxes are divided between buyer and seller. Income tax forms 2010 Example 1. Income tax forms 2010 Dennis and Beth White's real property tax year for both their old home and their new home is the calendar year, with payment due August 1. Income tax forms 2010 The tax on their old home, sold on May 7, was $620. Income tax forms 2010 The tax on their new home, bought on May 3, was $732. Income tax forms 2010 Dennis and Beth are considered to have paid a proportionate share of the real estate taxes on the old home even though they did not actually pay them to the taxing authority. Income tax forms 2010 On the other hand, they can claim only a proportionate share of the taxes they paid on their new property even though they paid the entire amount. Income tax forms 2010 Dennis and Beth owned their old home during the real property tax year for 126 days (January 1 to May 6, the day before the sale). Income tax forms 2010 They figure their deduction for taxes on their old home as follows. Income tax forms 2010 Worksheet 22-1. Income tax forms 2010 Figuring Your Real Estate Tax Deduction — Taxes on Old Home 1. Income tax forms 2010 Enter the total real estate taxes for the real property tax year $620 2. Income tax forms 2010 Enter the number of days in the real property tax year that you owned the property 126 3. Income tax forms 2010 Divide line 2 by 365 (for leap years, divide line 2 by 366) . Income tax forms 2010 3452 4. Income tax forms 2010 Multiply line 1 by line 3. Income tax forms 2010 This is your deduction. Income tax forms 2010 Enter it on Schedule A (Form 1040), line 6 $214 Since the buyers of their old home paid all of the taxes, Dennis and Beth also include the $214 in the selling price of the old home. Income tax forms 2010 (The buyers add the $214 to their cost of the home. Income tax forms 2010 ) Dennis and Beth owned their new home during the real property tax year for 243 days (May 3 to December 31, including their date of purchase). Income tax forms 2010 They figure their deduction for taxes on their new home as follows. Income tax forms 2010 Worksheet 22-1. Income tax forms 2010 Figuring Your Real Estate Tax Deduction — Taxes on New Home 1. Income tax forms 2010 Enter the total real estate taxes for the real property tax year $732 2. Income tax forms 2010 Enter the number of days in the real property tax year that you owned the property 243 3. Income tax forms 2010 Divide line 2 by 365 (for leap years, divide line 2 by 366) . Income tax forms 2010 6658 4. Income tax forms 2010 Multiply line 1 by line 3. Income tax forms 2010 This is your deduction. Income tax forms 2010 Enter it on Schedule A (Form 1040), line 6 $487 Since Dennis and Beth paid all of the taxes on the new home, they add $245 ($732 paid less $487 deduction) to their cost of the new home. Income tax forms 2010 (The sellers add this $245 to their selling price and deduct the $245 as a real estate tax. Income tax forms 2010 ) Dennis and Beth's real estate tax deduction for their old and new homes is the sum of $214 and $487, or $701. Income tax forms 2010 They will enter this amount on Schedule A (Form 1040), line 6. Income tax forms 2010 Example 2. Income tax forms 2010 George and Helen Brown bought a new home on May 3, 2013. Income tax forms 2010 Their real property tax year for the new home is the calendar year. Income tax forms 2010 Real estate taxes for 2012 were assessed in their state on January 1, 2013. Income tax forms 2010 The taxes became due on May 31, 2013, and October 31, 2013. Income tax forms 2010 The Browns agreed to pay all taxes due after the date of purchase. Income tax forms 2010 Real estate taxes for 2012 were $680. Income tax forms 2010 They paid $340 on May 31, 2013, and $340 on October 31, 2013. Income tax forms 2010 These taxes were for the 2012 real property tax year. Income tax forms 2010 The Browns cannot deduct them since they did not own the property until 2013. Income tax forms 2010 Instead, they must add $680 to the cost of their new home. Income tax forms 2010 In January 2014, the Browns receive their 2013 property tax statement for $752, which they will pay in 2014. Income tax forms 2010 The Browns owned their new home during the 2013 real property tax year for 243 days (May 3 to December 31). Income tax forms 2010 They will figure their 2014 deduction for taxes as follows. Income tax forms 2010 Worksheet 22-1. Income tax forms 2010 Figuring Your Real Estate Tax Deduction — Taxes on New Home 1. Income tax forms 2010 Enter the total real estate taxes for the real property tax year $752 2. Income tax forms 2010 Enter the number of days in the real property tax year that you owned the property 243 3. Income tax forms 2010 Divide line 2 by 365 (for leap years, divide line 2 by 366) . Income tax forms 2010 6658 4. Income tax forms 2010 Multiply line 1 by line 3. Income tax forms 2010 This is your deduction. Income tax forms 2010 Claim it on Schedule A (Form 1040), line 6 $501 The remaining $251 ($752 paid less $501 deduction) of taxes paid in 2014, along with the $680 paid in 2013, is added to the cost of their new home. Income tax forms 2010 Because the taxes up to the date of sale are considered paid by the seller on the date of sale, the seller is entitled to a 2013 tax deduction of $931. Income tax forms 2010 This is the sum of the $680 for 2012 and the $251 for the 122 days the seller owned the home in 2013. Income tax forms 2010 The seller must also include the $931 in the selling price when he or she figures the gain or loss on the sale. Income tax forms 2010 The seller should contact the Browns in January 2014 to find out how much real estate tax is due for 2013. Income tax forms 2010 Form 1099-S. Income tax forms 2010   For certain sales or exchanges of real estate, the person responsible for closing the sale (generally the settlement agent) prepares Form 1099-S, Proceeds From Real Estate Transactions, to report certain information to the IRS and to the seller of the property. Income tax forms 2010 Box 2 of Form 1099-S is for the gross proceeds from the sale and should include the portion of the seller's real estate tax liability that the buyer will pay after the date of sale. Income tax forms 2010 The buyer includes these taxes in the cost basis of the property, and the seller both deducts this amount as a tax paid and includes it in the sales price of the property. Income tax forms 2010   For a real estate transaction that involves a home, any real estate tax the seller paid in advance but that is the liability of the buyer appears on Form 1099-S, box 5. Income tax forms 2010 The buyer deducts this amount as a real estate tax, and the seller reduces his or her real estate tax deduction (or includes it in income) by the same amount. Income tax forms 2010 See Refund (or rebate) , later. Income tax forms 2010 Taxes placed in escrow. Income tax forms 2010   If your monthly mortgage payment includes an amount placed in escrow (put in the care of a third party) for real estate taxes, you may not be able to deduct the total amount placed in escrow. Income tax forms 2010 You can deduct only the real estate tax that the third party actually paid to the taxing authority. Income tax forms 2010 If the third party does not notify you of the amount of real estate tax that was paid for you, contact the third party or the taxing authority to find the proper amount to show on your return. Income tax forms 2010 Tenants by the entirety. Income tax forms 2010   If you and your spouse held property as tenants by the entirety and you file separate federal returns, each of you can deduct only the taxes each of you paid on the property. Income tax forms 2010 Divorced individuals. Income tax forms 2010   If your divorce or separation agreement states that you must pay the real estate taxes for a home owned by you and your spouse, part of your payments may be deductible as alimony and part as real estate taxes. Income tax forms 2010 See Taxes and insurance in chapter 18 for more information. Income tax forms 2010 Ministers' and military housing allowances. Income tax forms 2010   If you are a minister or a member of the uniformed services and receive a housing allowance that you can exclude from income, you still can deduct all of the real estate taxes you pay on your home. Income tax forms 2010 Refund (or rebate). Income tax forms 2010   If you received a refund or rebate in 2013 of real estate taxes you paid in 2013, you must reduce your deduction by the amount refunded to you. Income tax forms 2010 If you received a refund or rebate in 2013 of real estate taxes you deducted in an earlier year (either as an itemized deduction or an increase to your standard deduction), you generally must include the refund or rebate in income in the year you receive it. Income tax forms 2010 However, the amount you include in income is limited to the amount of the deduction that reduced your tax in the earlier year. Income tax forms 2010 For more information, see Recoveries in chapter 12. Income tax forms 2010 Table 22-1. Income tax forms 2010 Which Taxes Can You Deduct? Type of Tax You Can Deduct You Cannot Deduct Fees and Charges Fees and charges that are expenses of your trade or business or of producing income. Income tax forms 2010 Fees and charges that are not expenses of your trade or business or of producing income, such as fees for driver's licenses, car inspections, parking, or charges for water bills (see Taxes and Fees You Cannot Deduct ). Income tax forms 2010     Fines and penalties. Income tax forms 2010 Income Taxes State and local income taxes. Income tax forms 2010 Federal income taxes. Income tax forms 2010   Foreign income taxes. Income tax forms 2010     Employee contributions to state funds listed under Contributions to state benefit funds . Income tax forms 2010 Employee contributions to private or voluntary disability plans. Income tax forms 2010     State and local general sales taxes if you choose to deduct state and local income taxes. Income tax forms 2010 General Sales Taxes State and local general sales taxes, including compensating use taxes. Income tax forms 2010 State and local income taxes if you choose to deduct state and local general sales taxes. Income tax forms 2010 Other Taxes Taxes that are expenses of your trade or business. Income tax forms 2010 Federal excise taxes, such as tax on gasoline, that are not expenses of your trade or business or of producing income. Income tax forms 2010   Taxes on property producing rent or royalty income. Income tax forms 2010 Per capita taxes. Income tax forms 2010   Occupational taxes. Income tax forms 2010 See chapter 28. Income tax forms 2010     One-half of self-employment tax paid. Income tax forms 2010   Personal Property Taxes State and local personal property taxes. Income tax forms 2010 Customs duties that are not expenses of your trade or business or of producing income. Income tax forms 2010 Real Estate Taxes State and local real estate taxes. Income tax forms 2010 Real estate taxes that are treated as imposed on someone else (see Division of real estate taxes between buyers and sellers ). Income tax forms 2010   Foreign real estate taxes. Income tax forms 2010 Taxes for local benefits (with exceptions). Income tax forms 2010 See Real Estate-Related Items You Cannot Deduct . Income tax forms 2010   Tenant's share of real estate taxes paid by  cooperative housing corporation. Income tax forms 2010 Trash and garbage pickup fees (with exceptions). Income tax forms 2010 See Real Estate-Related Items You Cannot Deduct . Income tax forms 2010     Rent increase due to higher real estate taxes. Income tax forms 2010     Homeowners' association charges. Income tax forms 2010 Real Estate-Related Items You Cannot Deduct Payments for the following items generally are not deductible as real estate taxes. Income tax forms 2010 Taxes for local benefits. Income tax forms 2010 Itemized charges for services (such as trash and garbage pickup fees). Income tax forms 2010 Transfer taxes (or stamp taxes). Income tax forms 2010 Rent increases due to higher real estate taxes. Income tax forms 2010 Homeowners' association charges. Income tax forms 2010 Taxes for local benefits. Income tax forms 2010   Deductible real estate taxes generally do not include taxes charged for local benefits and improvements tending to increase the value of your property. Income tax forms 2010 These include assessments for streets, sidewalks, water mains, sewer lines, public parking facilities, and similar improvements. Income tax forms 2010 You should increase the basis of your property by the amount of the assessment. Income tax forms 2010   Local benefit taxes are deductible only if they are for maintenance, repair, or interest charges related to those benefits. Income tax forms 2010 If only a part of the taxes is for maintenance, repair, or interest, you must be able to show the amount of that part to claim the deduction. Income tax forms 2010 If you cannot determine what part of the tax is for maintenance, repair, or interest, none of it is deductible. Income tax forms 2010    Taxes for local benefits may be included in your real estate tax bill. Income tax forms 2010 If your taxing authority (or mortgage lender) does not furnish you a copy of your real estate tax bill, ask for it. Income tax forms 2010 You should use the rules above to determine if the local benefit tax is deductible. Income tax forms 2010 Contact the taxing authority if you need additional information about a specific charge on your real estate tax bill. Income tax forms 2010 Itemized charges for services. Income tax forms 2010    An itemized charge for services assessed against specific property or certain people is not a tax, even if the charge is paid to the taxing authority. Income tax forms 2010 For example, you cannot deduct the charge as a real estate tax if it is: A unit fee for the delivery of a service (such as a $5 fee charged for every 1,000 gallons of water you use), A periodic charge for a residential service (such as a $20 per month or $240 annual fee charged to each homeowner for trash collection), or A flat fee charged for a single service provided by your government (such as a $30 charge for mowing your lawn because it was allowed to grow higher than permitted under your local ordinance). Income tax forms 2010    You must look at your real estate tax bill to determine if any nondeductible itemized charges, such as those listed above, are included in the bill. Income tax forms 2010 If your taxing authority (or mortgage lender) does not furnish you a copy of your real estate tax bill, ask for it. Income tax forms 2010 Exception. Income tax forms 2010   Service charges used to maintain or improve services (such as trash collection or police and fire protection) are deductible as real estate taxes if: The fees or charges are imposed at a like rate against all property in the taxing jurisdiction, The funds collected are not earmarked; instead, they are commingled with general revenue funds, and Funds used to maintain or improve services are not limited to or determined by the amount of these fees or charges collected. Income tax forms 2010 Transfer taxes (or stamp taxes). Income tax forms 2010   Transfer taxes and similar taxes and charges on the sale of a personal home are not deductible. Income tax forms 2010 If they are paid by the seller, they are expenses of the sale and reduce the amount realized on the sale. Income tax forms 2010 If paid by the buyer, they are included in the cost basis of the property. Income tax forms 2010 Rent increase due to higher real estate taxes. Income tax forms 2010   If your landlord increases your rent in the form of a tax surcharge because of increased real estate taxes, you cannot deduct the increase as taxes. Income tax forms 2010 Homeowners' association charges. Income tax forms 2010   These charges are not deductible because they are imposed by the homeowners' association, rather than the state or local government. Income tax forms 2010 Personal Property Taxes Personal property tax is deductible if it is a state or local tax that is: Charged on personal property, Based only on the value of the personal property, and Charged on a yearly basis, even if it is collected more or less than once a year. Income tax forms 2010 A tax that meets the above requirements can be considered charged on personal property even if it is for the exercise of a privilege. Income tax forms 2010 For example, a yearly tax based on value qualifies as a personal property tax even if it is called a registration fee and is for the privilege of registering motor vehicles or using them on the highways. Income tax forms 2010 If the tax is partly based on value and partly based on other criteria, it may qualify in part. Income tax forms 2010 Example. Income tax forms 2010 Your state charges a yearly motor vehicle registration tax of 1% of value plus 50 cents per hundredweight. Income tax forms 2010 You paid $32 based on the value ($1,500) and weight (3,400 lbs. Income tax forms 2010 ) of your car. Income tax forms 2010 You can deduct $15 (1% × $1,500) as a personal property tax because it is based on the value. Income tax forms 2010 The remaining $17 ($. Income tax forms 2010 50 × 34), based on the weight, is not deductible. Income tax forms 2010 Taxes and Fees You Cannot Deduct Many federal, state, and local government taxes are not deductible because they do not fall within the categories discussed earlier. Income tax forms 2010 Other taxes and fees, such as federal income taxes, are not deductible because the tax law specifically prohibits a deduction for them. Income tax forms 2010 See Table 22-1. Income tax forms 2010 Taxes and fees that are generally not deductible include the following items. Income tax forms 2010 Employment taxes. Income tax forms 2010 This includes social security, Medicare, and railroad retirement taxes withheld from your pay. Income tax forms 2010 However, one-half of self-employment tax you pay is deductible. Income tax forms 2010 In addition, the social security and other employment taxes you pay on the wages of a household worker may be included in medical expenses that you can deduct or child care expenses that allow you to claim the child and dependent care credit. Income tax forms 2010 For more information, see chapters 21 and 32. Income tax forms 2010 Estate, inheritance, legacy, or succession taxes. Income tax forms 2010 However, you can deduct the estate tax attributable to income in respect of a decedent if you, as a beneficiary, must include that income in your gross income. Income tax forms 2010 In that case, deduct the estate tax as a miscellaneous deduction that is not subject to the 2%-of-adjusted-gross-income limit. Income tax forms 2010 For more information, see Publication 559, Survivors, Executors, and Administrators. Income tax forms 2010 Federal income taxes. Income tax forms 2010 This includes income taxes withheld from your pay. Income tax forms 2010 Fines and penalties. Income tax forms 2010 You cannot deduct fines and penalties paid to a government for violation of any law, including related amounts forfeited as collateral deposits. Income tax forms 2010 Gift taxes. Income tax forms 2010 License fees. Income tax forms 2010 You cannot deduct license fees for personal purposes (such as marriage, driver's, and dog license fees). Income tax forms 2010 Per capita taxes. Income tax forms 2010 You cannot deduct state or local per capita taxes. Income tax forms 2010 Many taxes and fees other than those listed above are also nondeductible, unless they are ordinary and necessary expenses of a business or income producing activity. Income tax forms 2010 For other nondeductible items, see Real Estate-Related Items You Cannot Deduct , earlier. Income tax forms 2010 Where To Deduct You deduct taxes on the following schedules. Income tax forms 2010 State and local income taxes. Income tax forms 2010    These taxes are deducted on Schedule A (Form 1040), line 5, even if your only source of income is from business, rents, or royalties. Income tax forms 2010 Check box a on line 5. Income tax forms 2010 General sales taxes. Income tax forms 2010   Sales taxes are deducted on Schedule A (Form 1040), line 5. Income tax forms 2010 You must check box b on line 5. Income tax forms 2010 If you elect to deduct sales taxes, you cannot deduct state and local income taxes on Schedule A (Form 1040), line 5, box a. Income tax forms 2010 Foreign income taxes. Income tax forms 2010   Generally, income taxes you pay to a foreign country or U. Income tax forms 2010 S. Income tax forms 2010 possession can be claimed as an itemized deduction on Schedule A (Form 1040), line 8, or as a credit against your U. Income tax forms 2010 S. Income tax forms 2010 income tax on Form 1040, line 47. Income tax forms 2010 To claim the credit, you may have to complete and attach Form 1116. Income tax forms 2010 For more information, see chapter 37, the Form 1040 instructions, or Publication 514. Income tax forms 2010 Real estate taxes and personal property taxes. Income tax forms 2010    Real estate and personal property taxes are deducted on Schedule A (Form 1040), lines 6 and 7, respectively, unless they are paid on property used in your business, in which case they are deducted on Schedule C, Schedule C-EZ, or Schedule F (Form 1040). Income tax forms 2010 Taxes on property that produces rent or royalty income are deducted on Schedule E (Form 1040). Income tax forms 2010 Self-employment tax. Income tax forms 2010    Deduct one-half of your self-employment tax on Form 1040, line 27. Income tax forms 2010 Other taxes. Income tax forms 2010    All other deductible taxes are deducted on Schedule A (Form 1040), line 8. Income tax forms 2010 Prev  Up  Next   Home   More Online Publications