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Where Can I File My 2010 Taxes Online For Free

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Where Can I File My 2010 Taxes Online For Free

Where can i file my 2010 taxes online for free Publication 561 - Additional Material Table of Contents Tax Publications for Individual Taxpayers and Commonly Used Tax Forms Tax Publications for Individual Taxpayers and Commonly Used Tax Forms. Where can i file my 2010 taxes online for free  Summary: This is a listing of tax publications and commonly used tax forms. Where can i file my 2010 taxes online for free The text states:Tax Publications for Individual Taxpayers. Where can i file my 2010 taxes online for free  See How to Get Tax Help for a variety of ways to get publications, including by computer, phone, and mail. Where can i file my 2010 taxes online for free General Guides. Where can i file my 2010 taxes online for free   1--Your Rights as a Taxpayer 17--Your Federal Income Tax (For Individuals) 334--Tax Guide for Small Business (For Individuals Who Use Schedule C or C-EZ) 509--Tax Calendars for 2007 553--Highlights of 2006 Tax Changes 910--IRS Guide to Free Tax Services Specialized Publications. Where can i file my 2010 taxes online for free   3--Armed Forces' Tax Guide 54--Tax Guide for U. Where can i file my 2010 taxes online for free S. Where can i file my 2010 taxes online for free Citizens and Residents Aliens Abroad 225--Farmer's Tax Guide 463--Travel, Entertainment, Gift, and Car Expenses 501--Exemptions, Standard Deduction, and Filing Information 502--Medical and Dental Expenses 503--Child and Dependent Care Expenses 504--Divorced or Separated Individuals 505--Tax Withholding and Estimated Tax 514--Foreign Tax Credit for Individuals 516--U. Where can i file my 2010 taxes online for free S. Where can i file my 2010 taxes online for free Government Civilian Employees Stationed Abroad 517--Social Security and Other Information for Members of the Clergy and Religious Workers 519--U. Where can i file my 2010 taxes online for free S. Where can i file my 2010 taxes online for free Tax Guide for Aliens 520--Scholarships and Fellowships 521--Moving Expenses 523--Selling Your Home 524--Credit for the Elderly or the Disabled 525--Taxable and Nontaxable Income 526--Charitable Contributions 527--Residential Rental Property 529--Miscellaneous Deductions 530--Tax Information for First-Time Homeowners 531--Reporting Tip Income 536--Net Operating Losses (NOLs) for Individuals, Estates, and Trusts 537--Installment Sales 541--Partnerships 544--Sales and Other Dispositions of Assets 547--Casualties, Disasters, and Thefts 550--Investment Income and Expenses 551--Basis of Assets 552--Recordkeeping for Individuals 554--Older Americans' Tax Guide 555--Community Property 556--Examination of Returns, Appeal Rights, and Claims for Refund 559--Survivors, Executors, and Administrators 561--Determining the Value of Donated Property 564--Mutual Fund Distributions 570--Tax Guide for Individuals With Income From U. Where can i file my 2010 taxes online for free S. Where can i file my 2010 taxes online for free Possessions 571--Tax-Sheltered Annuity Plans (403(b) Plans) 575--Pension and Annuity Income 584--Casualty, Disaster, and Theft Loss Workbook (Personal-Use Property) 587--Business Use of Your Home (Including Use by Daycare Providers) 590--Individual Retirement Arrangements (IRAs) 593--Tax Highlights for U. Where can i file my 2010 taxes online for free S. Where can i file my 2010 taxes online for free Citizens and Residents Going Abroad 594--What You Should Know About the IRS Collection Process 596--Earned Income Credit (EIC) 721--Tax Guide to U. Where can i file my 2010 taxes online for free S. Where can i file my 2010 taxes online for free Civil Service Retirement Benefits 901--U. Where can i file my 2010 taxes online for free S. Where can i file my 2010 taxes online for free Tax Treaties 907--Tax Highlights for Persons with Disabilities 908--Bankruptcy Tax Guide 915--Social Security and Equivalent Railroad Retirement Benefits 919--How Do I Adjust My Tax Withholding? 925--Passive Activity and At-Risk Rules 926--Household Employer's Tax Guide 929--Tax Rules for Children and Dependents 936--Home Mortgage Interest Deduction 946--How to Depreciate Property 947--Practice Before the IRS and Power of Attorney 950--Introduction to Estate and Gift Taxes 967--The IRS Will Figure Your Tax 969--Health Savings Accounts and Other Tax-Favored Health Plans 970--Tax Benefits for Education 971--Innocent Spouse Relief 972--Child Tax Credit 1542--Per Diem Rates 1544--Reporting Cash Payments of Over $10,000 (Received in a Trade or Business) 1546--The Taxpayer Advocate Service of the IRS - How to Get Help With Unresolved Tax Problems Spanish Language Publications. Where can i file my 2010 taxes online for free   1SP--Derechos del Contribuyente 579SP--Cómo Preparar la Declaración de Impuesto Federal 594SP--Que es lo que Debemos Saber sobre el Proceso de Cobro del IRS 596SP--Crédito por Ingreso del Trabajo 850--English-Spanish Glossary of Words and Phrases Used in Publications Issued by the Internal Revenue Service 1544SP--Informe de Pagos en Efectivo en Exceso de $10,000 (Recibidos en una Ocupación o Negocio) Commonly Used Tax Forms. Where can i file my 2010 taxes online for free  See How To Get Tax Help for a variety of ways to get forms, including by computer, fax, phone, and mail. Where can i file my 2010 taxes online for free 1040--U. Where can i file my 2010 taxes online for free S. Where can i file my 2010 taxes online for free Individual Income Tax Return Schedule A&B--Itemized Deductions & Interest and Ordinary Dividends Schedule C--Profit or Loss From Business Schedule C-EZ--Net Profit From Business Schedule D--Capital Gains and Losses Schedule D-1--Continuation Sheet for Schedule D Schedule E--Supplemental Income and Loss Schedule EIC--Earned Income Credit Schedule F--Profit or Loss From Farming Schedule H--Household Employment Taxes Schedule J--Income Averaging for Farmers and Fishermen Schedule R--Credit for the Elderly or the Disabled Schedule SE--Self-Employment Tax 1040A--U. Where can i file my 2010 taxes online for free S. Where can i file my 2010 taxes online for free Individual Income Tax Return Schedule 1--Interest and Ordinary Dividends for Form 1040A Filers Schedule 2--Child and Dependent Care Expenses for Form 1040A Filers Schedule 3--Credit for the Elderly or the Disabled for Form 1040A Filers 1040EZ--Income Tax Return for Single and Joint Filers With No Dependents 1040-ES--Estimated Tax for Individuals 1040X--Amended U. Where can i file my 2010 taxes online for free S. Where can i file my 2010 taxes online for free Individual Income Tax Return 2106--Employee Business Expenses 2106-EZ--Unreimbursed Employee Business Expenses 2210--Underpayment of Estimated Tax by Individuals, Estates, and Trusts 2441--Child and Dependent Care Expenses 2848--Power of Attorney and Declaration of Representative 3903--Moving Expenses 4562--Depreciation and Amortization 4868--Application for Automatic Extension of Time To File U. Where can i file my 2010 taxes online for free S. Where can i file my 2010 taxes online for free Individual Income Tax Return 4952--Investment Interest Expense Deduction 5329--Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts 6251--Alternative Minimum Tax--Individuals 8283--Noncash Charitable Contributions 8582--Passive Activity Loss Limitations 8606--Nondeductible IRAs 8812--Additional Child Tax Credit 8822--Change of Address 8829--Expenses for Business Use of Your Home 8863--Education Credits 9465--Installment Agreement Request Prev  Up  Next   Home   More Online Publications
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Where can i file my 2010 taxes online for free 4. Where can i file my 2010 taxes online for free   Special Situations Table of Contents Condominiums CooperativesDepreciation Property Changed to Rental UseBasis of Property Changed to Rental Use Figuring the Depreciation Deduction Renting Part of Property Not Rented for ProfitPostponing decision. Where can i file my 2010 taxes online for free Example—Property Changed to Rental Use This chapter discusses some rental real estate activities that are subject to additional rules. Where can i file my 2010 taxes online for free Condominiums A condominium is most often a dwelling unit in a multi-unit building, but can also take other forms, such as a townhouse or garden apartment. Where can i file my 2010 taxes online for free If you own a condominium, you also own a share of the common elements, such as land, lobbies, elevators, and service areas. Where can i file my 2010 taxes online for free You and the other condominium owners may pay dues or assessments to a special corporation that is organized to take care of the common elements. Where can i file my 2010 taxes online for free Special rules apply if you rent your condominium to others. Where can i file my 2010 taxes online for free You can deduct as rental expenses all the expenses discussed in chapters 1 and 2. Where can i file my 2010 taxes online for free In addition, you can deduct any dues or assessments paid for maintenance of the common elements. Where can i file my 2010 taxes online for free You cannot deduct special assessments you pay to a condominium management corporation for improvements. Where can i file my 2010 taxes online for free However, you may be able to recover your share of the cost of any improvement by taking depreciation. Where can i file my 2010 taxes online for free Cooperatives If you live in a cooperative, you do not own your apartment. Where can i file my 2010 taxes online for free Instead, a corporation owns the apartments and you are a tenant-stockholder in the cooperative housing corporation. Where can i file my 2010 taxes online for free If you rent your apartment to others, you usually can deduct, as a rental expense, all the maintenance fees you pay to the cooperative housing corporation. Where can i file my 2010 taxes online for free In addition to the maintenance fees paid to the cooperative housing corporation, you can deduct your direct payments for repairs, upkeep, and other rental expenses, including interest paid on a loan used to buy your stock in the corporation. Where can i file my 2010 taxes online for free Depreciation You will be depreciating your stock in the corporation rather than the apartment itself. Where can i file my 2010 taxes online for free Figure your depreciation deduction as follows. Where can i file my 2010 taxes online for free Figure the depreciation for all the depreciable real property owned by the corporation. Where can i file my 2010 taxes online for free (Depreciation methods are discussed in chapter 2 of this publication and Publication 946. Where can i file my 2010 taxes online for free ) If you bought your cooperative stock after its first offering, figure the depreciable basis of this property as follows. Where can i file my 2010 taxes online for free Multiply your cost per share by the total number of outstanding shares. Where can i file my 2010 taxes online for free Add to the amount figured in (a) any mortgage debt on the property on the date you bought the stock. Where can i file my 2010 taxes online for free Subtract from the amount figured in (b) any mortgage debt that is not for the depreciable real property, such as the part for the land. Where can i file my 2010 taxes online for free Subtract from the amount figured in (1) any depreciation for space owned by the corporation that can be rented but cannot be lived in by tenant-stockholders. Where can i file my 2010 taxes online for free Divide the number of your shares of stock by the total number of shares outstanding, including any shares held by the corporation. Where can i file my 2010 taxes online for free Multiply the result of (2) by the percentage you figured in (3). Where can i file my 2010 taxes online for free This is your depreciation on the stock. Where can i file my 2010 taxes online for free Your depreciation deduction for the year cannot be more than the part of your adjusted basis (defined in chapter 2) in the stock of the corporation that is allocable to your rental property. Where can i file my 2010 taxes online for free Payments added to capital account. Where can i file my 2010 taxes online for free   Payments earmarked for a capital asset or improvement, or otherwise charged to the corporation's capital account are added to the basis of your stock in the corporation. Where can i file my 2010 taxes online for free For example, you cannot deduct a payment used to pave a community parking lot, install a new roof, or pay the principal of the corporation's mortgage. Where can i file my 2010 taxes online for free   Treat as a capital cost the amount you were assessed for capital items. Where can i file my 2010 taxes online for free This cannot be more than the amount by which your payments to the corporation exceeded your share of the corporation's mortgage interest and real estate taxes. Where can i file my 2010 taxes online for free   Your share of interest and taxes is the amount the corporation elected to allocate to you, if it reasonably reflects those expenses for your apartment. Where can i file my 2010 taxes online for free Otherwise, figure your share in the following manner. Where can i file my 2010 taxes online for free Divide the number of your shares of stock by the total number of shares outstanding, including any shares held by the corporation. Where can i file my 2010 taxes online for free Multiply the corporation's deductible interest by the number you figured in (1). Where can i file my 2010 taxes online for free This is your share of the interest. Where can i file my 2010 taxes online for free Multiply the corporation's deductible taxes by the number you figured in (1). Where can i file my 2010 taxes online for free This is your share of the taxes. Where can i file my 2010 taxes online for free Property Changed to Rental Use If you change your home or other property (or a part of it) to rental use at any time other than the beginning of your tax year, you must divide yearly expenses, such as taxes and insurance, between rental use and personal use. Where can i file my 2010 taxes online for free You can deduct as rental expenses only the part of the expense that is for the part of the year the property was used or held for rental purposes. Where can i file my 2010 taxes online for free You cannot deduct depreciation or insurance for the part of the year the property was held for personal use. Where can i file my 2010 taxes online for free However, you can include the home mortgage interest, qualified mortgage insurance premiums, and real estate tax expenses for the part of the year the property was held for personal use as an itemized deduction on Schedule A (Form 1040). Where can i file my 2010 taxes online for free Example. Where can i file my 2010 taxes online for free Your tax year is the calendar year. Where can i file my 2010 taxes online for free You moved from your home in May and started renting it out on June 1. Where can i file my 2010 taxes online for free You can deduct as rental expenses seven-twelfths of your yearly expenses, such as taxes and insurance. Where can i file my 2010 taxes online for free Starting with June, you can deduct as rental expenses the amounts you pay for items generally billed monthly, such as utilities. Where can i file my 2010 taxes online for free When figuring depreciation, treat the property as placed in service on June 1. Where can i file my 2010 taxes online for free Basis of Property Changed to Rental Use When you change property you held for personal use to rental use (for example, you rent your former home), the basis for depreciation will be the lesser of fair market value or adjusted basis on the date of conversion. Where can i file my 2010 taxes online for free Fair market value. Where can i file my 2010 taxes online for free   This is the price at which the property would change hands between a willing buyer and a willing seller, neither having to buy or sell, and both having reasonable knowledge of all the relevant facts. Where can i file my 2010 taxes online for free Sales of similar property, on or about the same date, may be helpful in figuring the fair market value of the property. Where can i file my 2010 taxes online for free Figuring the basis. Where can i file my 2010 taxes online for free   The basis for depreciation is the lesser of: The fair market value of the property on the date you changed it to rental use, or Your adjusted basis on the date of the change—that is, your original cost or other basis of the property, plus the cost of permanent additions or improvements since you acquired it, minus deductions for any casualty or theft losses claimed on earlier years' income tax returns and other decreases to basis. Where can i file my 2010 taxes online for free For other increases and decreases to basis, see Adjusted Basis in chapter 2. Where can i file my 2010 taxes online for free Example. Where can i file my 2010 taxes online for free Several years ago you built your home for $140,000 on a lot that cost you $14,000. Where can i file my 2010 taxes online for free Before changing the property to rental use this year, you added $28,000 of permanent improvements to the house and claimed a $3,500 casualty loss deduction for damage to the house. Where can i file my 2010 taxes online for free Part of the improvements qualified for a $500 residential energy credit, which you claimed on your 2010 tax return. Where can i file my 2010 taxes online for free Because land is not depreciable, you can only include the cost of the house when figuring the basis for depreciation. Where can i file my 2010 taxes online for free The adjusted basis of the house at the time of the change in its use was $164,000 ($140,000 + $28,000 − $3,500 − $500). Where can i file my 2010 taxes online for free On the date of the change in use, your property had a fair market value of $168,000, of which $21,000 was for the land and $147,000 was for the house. Where can i file my 2010 taxes online for free The basis for depreciation on the house is the fair market value on the date of the change ($147,000), because it is less than your adjusted basis ($164,000). Where can i file my 2010 taxes online for free Cooperatives If you change your cooperative apartment to rental use, figure your allowable depreciation as explained earlier. Where can i file my 2010 taxes online for free (Depreciation methods are discussed in chapter 2 of this publication and Publication 946. Where can i file my 2010 taxes online for free ) The basis of all the depreciable real property owned by the cooperative housing corporation is the smaller of the following amounts. Where can i file my 2010 taxes online for free The fair market value of the property on the date you change your apartment to rental use. Where can i file my 2010 taxes online for free This is considered to be the same as the corporation's adjusted basis minus straight line depreciation, unless this value is unrealistic. Where can i file my 2010 taxes online for free The corporation's adjusted basis in the property on that date. Where can i file my 2010 taxes online for free Do not subtract depreciation when figuring the corporation's adjusted basis. Where can i file my 2010 taxes online for free If you bought the stock after its first offering, the corporation's adjusted basis in the property is the amount figured in (1) under Depreciation (under Cooperatives, near the beginning of this chapter). Where can i file my 2010 taxes online for free The fair market value of the property is considered to be the same as the corporation's adjusted basis figured in this way minus straight line depreciation, unless the value is unrealistic. Where can i file my 2010 taxes online for free Figuring the Depreciation Deduction To figure the deduction, use the depreciation system in effect when you convert your residence to rental use. Where can i file my 2010 taxes online for free Generally, that will be MACRS for any conversion after 1986. Where can i file my 2010 taxes online for free Treat the property as placed in service on the conversion date. Where can i file my 2010 taxes online for free Example. Where can i file my 2010 taxes online for free Your converted residence (see previous example under Figuring the basis) was available for rent on August 1. Where can i file my 2010 taxes online for free Using Table 2-2d (see chapter 2), the percentage for Year 1 beginning in August is 1. Where can i file my 2010 taxes online for free 364% and the depreciation deduction for Year 1 is $2,005 ($147,000 × . Where can i file my 2010 taxes online for free 01364). Where can i file my 2010 taxes online for free Renting Part of Property If you rent part of your property, you must divide certain expenses between the part of the property used for rental purposes and the part of the property used for personal purposes, as though you actually had two separate pieces of property. Where can i file my 2010 taxes online for free You can deduct the expenses related to the part of the property used for rental purposes, such as home mortgage interest, qualified mortgage insurance premiums, and real estate taxes, as rental expenses on Schedule E (Form 1040). Where can i file my 2010 taxes online for free You can also deduct as rental expenses a portion of other expenses that normally are nondeductible personal expenses, such as expenses for electricity, or painting the outside of the house. Where can i file my 2010 taxes online for free There is no change in the types of expenses deductible for the personal-use part of your property. Where can i file my 2010 taxes online for free Generally, these expenses may be deducted only if you itemize your deductions on Schedule A (Form 1040). Where can i file my 2010 taxes online for free You cannot deduct any part of the cost of the first phone line even if your tenants have unlimited use of it. Where can i file my 2010 taxes online for free You do not have to divide the expenses that belong only to the rental part of your property. Where can i file my 2010 taxes online for free For example, if you paint a room that you rent, or if you pay premiums for liability insurance in connection with renting a room in your home, your entire cost is a rental expense. Where can i file my 2010 taxes online for free If you install a second phone line strictly for your tenant's use, all of the cost of the second line is deductible as a rental expense. Where can i file my 2010 taxes online for free You can deduct depreciation on the part of the house used for rental purposes as well as on the furniture and equipment you use for rental purposes. Where can i file my 2010 taxes online for free How to divide expenses. Where can i file my 2010 taxes online for free   If an expense is for both rental use and personal use, such as mortgage interest or heat for the entire house, you must divide the expense between rental use and personal use. Where can i file my 2010 taxes online for free You can use any reasonable method for dividing the expense. Where can i file my 2010 taxes online for free It may be reasonable to divide the cost of some items (for example, water) based on the number of people using them. Where can i file my 2010 taxes online for free The two most common methods for dividing an expense are (1) the number of rooms in your home, and (2) the square footage of your home. Where can i file my 2010 taxes online for free Example. Where can i file my 2010 taxes online for free You rent a room in your house. Where can i file my 2010 taxes online for free The room is 12 × 15 feet, or 180 square feet. Where can i file my 2010 taxes online for free Your entire house has 1,800 square feet of floor space. Where can i file my 2010 taxes online for free You can deduct as a rental expense 10% of any expense that must be divided between rental use and personal use. Where can i file my 2010 taxes online for free If your heating bill for the year for the entire house was $600, $60 ($600 × . Where can i file my 2010 taxes online for free 10) is a rental expense. Where can i file my 2010 taxes online for free The balance, $540, is a personal expense that you cannot deduct. Where can i file my 2010 taxes online for free Duplex. Where can i file my 2010 taxes online for free   A common situation is the duplex where you live in one unit and rent out the other. Where can i file my 2010 taxes online for free Certain expenses apply to the entire property, such as mortgage interest and real estate taxes, and must be split to determine rental and personal expenses. Where can i file my 2010 taxes online for free Example. Where can i file my 2010 taxes online for free You own a duplex and live in one half, renting the other half. Where can i file my 2010 taxes online for free Both units are approximately the same size. Where can i file my 2010 taxes online for free Last year, you paid a total of $10,000 mortgage interest and $2,000 real estate taxes for the entire property. Where can i file my 2010 taxes online for free You can deduct $5,000 mortgage interest and $1,000 real estate taxes on Schedule E (Form 1040), and if you itemize your deductions, you can deduct the other $5,000 mortgage interest and $1,000 real estate taxes on Schedule A (Form 1040). Where can i file my 2010 taxes online for free Not Rented for Profit If you do not rent your property to make a profit, you can deduct your rental expenses only up to the amount of your rental income. Where can i file my 2010 taxes online for free You cannot deduct a loss or carry forward to the next year any rental expenses that are more than your rental income for the year. Where can i file my 2010 taxes online for free Where to report. Where can i file my 2010 taxes online for free   Report your not-for-profit rental income on Form 1040 or 1040NR, line 21. Where can i file my 2010 taxes online for free For example, if you are filing Form 1040, you can include your mortgage interest and any qualified mortgage insurance premiums (if you use the property as your main home or second home), real estate taxes, and casualty losses on the appropriate lines of Schedule A (Form 1040) if you itemize your deductions. Where can i file my 2010 taxes online for free   If you itemize your deductions, claim your other rental expenses, subject to the rules explained in chapter 1 of Publication 535, as miscellaneous itemized deductions on Schedule A (Form 1040), line 23, or Schedule A (Form 1040NR), line 9. Where can i file my 2010 taxes online for free You can deduct these expenses only if they, together with certain other miscellaneous itemized deductions, total more than 2% of your adjusted gross income. Where can i file my 2010 taxes online for free Presumption of profit. Where can i file my 2010 taxes online for free   If your rental income is more than your rental expenses for at least 3 years out of a period of 5 consecutive years, you are presumed to be renting your property to make a profit. Where can i file my 2010 taxes online for free Postponing decision. Where can i file my 2010 taxes online for free   If you are starting your rental activity and do not have 3 years showing a profit, you can elect to have the presumption made after you have the 5 years of experience required by the test. Where can i file my 2010 taxes online for free You may choose to postpone the decision of whether the rental is for profit by filing Form 5213. Where can i file my 2010 taxes online for free You must file Form 5213 within 3 years after the due date of your return (determined without extensions) for the year in which you first carried on the activity or, if earlier, within 60 days after receiving written notice from the Internal Revenue Service proposing to disallow deductions attributable to the activity. Where can i file my 2010 taxes online for free More information. Where can i file my 2010 taxes online for free   For more information about the rules for an activity not engaged in for profit, see Not-for-Profit Activities in chapter 1 of Publication 535. Where can i file my 2010 taxes online for free Example—Property Changed to Rental Use In January, Eileen Johnson bought a condominium apartment to live in. Where can i file my 2010 taxes online for free Instead of selling the house she had been living in, she decided to change it to rental property. Where can i file my 2010 taxes online for free Eileen selected a tenant and started renting the house on February 1. Where can i file my 2010 taxes online for free Eileen charges $750 a month for rent and collects it herself. Where can i file my 2010 taxes online for free Eileen also received a $750 security deposit from her tenant. Where can i file my 2010 taxes online for free Because she plans to return it to her tenant at the end of the lease, she does not include it in her income. Where can i file my 2010 taxes online for free Her rental expenses for the year are as follows. Where can i file my 2010 taxes online for free   Mortgage interest $1,800     Fire insurance (1-year policy) 100     Miscellaneous repairs (after renting) 297     Real estate taxes imposed and paid 1,200   Eileen must divide the real estate taxes, mortgage interest, and fire insurance between the personal use of the property and the rental use of the property. Where can i file my 2010 taxes online for free She can deduct eleven-twelfths of these expenses as rental expenses. Where can i file my 2010 taxes online for free She can include the balance of the allowable taxes and mortgage interest on Schedule A (Form 1040) if she itemizes. Where can i file my 2010 taxes online for free She cannot deduct the balance of the fire insurance because it is a personal expense. Where can i file my 2010 taxes online for free Eileen bought this house in 1984 for $35,000. Where can i file my 2010 taxes online for free Her property tax was based on assessed values of $10,000 for the land and $25,000 for the house. Where can i file my 2010 taxes online for free Before changing it to rental property, Eileen added several improvements to the house. Where can i file my 2010 taxes online for free She figures her adjusted basis as follows:   Improvements Cost     House $25,000     Remodeled kitchen 4,200     Recreation room 5,800     New roof 1,600     Patio and deck 2,400     Adjusted basis $39,000   On February 1, when Eileen changed her house to rental property, the property had a fair market value of $152,000. Where can i file my 2010 taxes online for free Of this amount, $35,000 was for the land and $117,000 was for the house. Where can i file my 2010 taxes online for free Because Eileen's adjusted basis is less than the fair market value on the date of the change, Eileen uses $39,000 as her basis for depreciation. Where can i file my 2010 taxes online for free As specified for residential rental property, Eileen must use the straight line method of depreciation over the GDS or ADS recovery period. Where can i file my 2010 taxes online for free She chooses the GDS recovery period of 27. Where can i file my 2010 taxes online for free 5 years. Where can i file my 2010 taxes online for free She uses Table 2-2d to find her depreciation percentage. Where can i file my 2010 taxes online for free Since she placed the property in service in February, the percentage is 3. Where can i file my 2010 taxes online for free 182%. Where can i file my 2010 taxes online for free On April 1, Eileen bought a new dishwasher for the rental property at a cost of $425. Where can i file my 2010 taxes online for free The dishwasher is personal property used in a rental real estate activity, which has a 5-year recovery period. Where can i file my 2010 taxes online for free She uses Table 2-2a to find the percentage for Year 1 under “Half-year convention” (20%) to figure her depreciation deduction. Where can i file my 2010 taxes online for free On May 1, Eileen paid $4,000 to have a furnace installed in the house. Where can i file my 2010 taxes online for free The furnace is residential rental property. Where can i file my 2010 taxes online for free Because she placed the property in service in May, the percentage from Table 2-2d is 2. Where can i file my 2010 taxes online for free 273%. Where can i file my 2010 taxes online for free Eileen figures her net rental income or loss for the house as follows: Total rental income received  ($750 × 11) $8,250 Minus: Expenses     Mortgage interest ($1,800 × 11/12) $1,650   Fire insurance ($100 × 11/12) 92   Miscellaneous repairs 297   Real estate taxes ($1,200 × 11/12) 1,100   Total expenses 3,139 Balance $5,111 Minus: Depreciation     House ($39,000 × . Where can i file my 2010 taxes online for free 03182) $1,241   Dishwasher ($425 × . Where can i file my 2010 taxes online for free 20) 85   Furnace ($4,000 × . Where can i file my 2010 taxes online for free 02273) 91   Total depreciation 1,417 Net rental income for house   $3,694       Eileen uses Schedule E, Part I, to report her rental income and expenses. Where can i file my 2010 taxes online for free She enters her income, expenses, and depreciation for the house in the column for Property A. Where can i file my 2010 taxes online for free Since all property was placed in service this year, Eileen must use Form 4562 to figure the depreciation. Where can i file my 2010 taxes online for free See the Instructions for Form 4562 for more information on preparing the form. Where can i file my 2010 taxes online for free Prev  Up  Next   Home   More Online Publications