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E File State Taxes2011 1040 Ez Tax Forms2011 Tax ReturnI Need To File 2011 Tax ReturnForm 1040ez 2010Free State Tax Filing 2012Amended Tax Returns More:label_amended_20tax_20returns More:taxes2011 TaxesFile 1040x Online FreeHow To File An Amended Tax Return For 2012File State Income Tax OnlyPrintable Tax Forms 20102010 Tax Form 1040xTax Preparation SoftwareTax Amend Form1040x Online FormWhat Is A 1040nrFree Tax FilingFile State Tax ReturnE File 2012 Tax ReturnEz Form OnlineWhere To File 2012 Taxes For FreeAlabama 40 Tax Forms 20122012 Federal Income Tax2011 Income Tax Forms 1040ez2011 Federal Tax FormsWww Irs Gov Freefile Fillable FormsWww Freefilefillableforms ComFree Online Tax FilingTaxact 2006 Free DownloadForm 1040ezH&r Block Online FilingI Need To File My 2011 Taxes For Free Online2010 1040 Tax FormsWww Freefile Irs GovIrs Easy FormTax Return 2012Free File Fillable Forms 20122012 Federal Income Tax FormsEz 40 Tax Form

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Www myfreetaxes com mcrsvp Index A Assistance (see Tax help) C Carryback period, When To Use an NOL Carryback, waiving, Waiving the Carryback Period Carryforward period, When To Use an NOL Carryover from 2012 to 2013 Estates and trusts, Estates and trusts. Www myfreetaxes com mcrsvp Worksheet instructions, Worksheet Instructions Claiming an NOL deduction, How To Claim an NOL Deduction D Deducting a carryback, Deducting a Carryback Deducting a carryforward, Deducting a Carryforward Domestic production activities deduction, Domestic production activities deduction (line 23). Www myfreetaxes com mcrsvp , Modified taxable income. Www myfreetaxes com mcrsvp E Eligible loss, Eligible loss. Www myfreetaxes com mcrsvp F Farming business, Farming business. Www myfreetaxes com mcrsvp Farming loss, Farming loss. Www myfreetaxes com mcrsvp Figuring an NOL Capital losses, Adjustments for capital losses (lines 19–22). Www myfreetaxes com mcrsvp Carryover, How To Figure an NOL Carryover Form 1045, Schedule A, Form 1045, Schedule A. Www myfreetaxes com mcrsvp NOL deduction, NOLs from other years (line 24). Www myfreetaxes com mcrsvp Nonbusiness deductions, Nonbusiness deductions (line 6). Www myfreetaxes com mcrsvp Nonbusiness income, Nonbusiness income (line 7). Www myfreetaxes com mcrsvp Filing status, change in, Change in Filing Status Form 1045, Schedule A, Form 1045, Schedule A. Www myfreetaxes com mcrsvp Form 1045, Schedule B, Form 1045, Schedule B. Www myfreetaxes com mcrsvp Forms and schedules Form 1040X, Form 1040X. Www myfreetaxes com mcrsvp Form 1045, Form 1045. Www myfreetaxes com mcrsvp Form 1045, Schedule A, Form 1045, Schedule A. Www myfreetaxes com mcrsvp Form 1045, Schedule B, Form 1045, Schedule B. Www myfreetaxes com mcrsvp Free tax services, Free help with your tax return. Www myfreetaxes com mcrsvp Future developments, Reminders H Help (see Tax help) How to carry an NOL back or forward, How To Carry an NOL Back or Forward How to figure an NOL, How To Figure an NOL I Illustrated forms and schedules Form 1045, Illustrated Form 1045 Form 1045, Schedule A, Illustrated Form 1045, Schedule A Form 1045, Schedule B, Form 1045, Schedule B. Www myfreetaxes com mcrsvp M Marital status, change in, Change in Marital Status Missing children, photographs of, Reminders Modified taxable income, Modified taxable income. Www myfreetaxes com mcrsvp N NOL resulting in no taxable income, NOL resulting in no taxable income. Www myfreetaxes com mcrsvp NOL year, Introduction, NOL year. Www myfreetaxes com mcrsvp P Publications (see Tax help) Q Qualified disaster loss, Qualified disaster loss. Www myfreetaxes com mcrsvp Qualified small business, Qualified small business. Www myfreetaxes com mcrsvp R Refiguring tax, Refiguring your tax. Www myfreetaxes com mcrsvp S Specified liability loss, Specified liability loss. Www myfreetaxes com mcrsvp Steps in figuring NOL, NOL Steps T Tax help, How To Get Tax Help W Waiving the 10-year carryback, Waiving the 10-year carryback. Www myfreetaxes com mcrsvp Waiving the 5-year carryback, Waiving the 5-year carryback. Www myfreetaxes com mcrsvp Waiving the carryback period, Waiving the Carryback Period When to use an NOL, When To Use an NOL Worksheet (Continued), Carryover from 2012 to 2013, Prev  Up     Home   More Online Publications
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SOI Tax Stats - Personal Wealth Statistics

Return to the Tax Stats home page

What is the Personal Wealth Study?

The Personal Wealth Study uses information reported on Form 706, United States Estate (and Generation Skipping Transfer) Tax Return, to estimate the wealth of the living population. These estimates, based on the Estate Multiplier technique, appear every three years. The estimates are limited to that segment of the population for whom personal wealth is at least equal to the estate tax filing threshold in effect for the estimation period.

For information about selected terms and concepts and a description of the data sources and limitations, please visit Personal Wealth Study Metadata.

SOI Data Tables SOI Bulletin Articles Research Papers
 
Additional Information

Compendium of Federal 
Estate Tax & Personal 
Wealth Studies: Volume 1
 

Compendium of Federal 
Transfer Tax & Personal 
Wealth Studies: Volume 2

 

SOI Data Tables

Included Items: Total and selected assets, debts and mortgages, and net worth.

All Top Wealthholders by Size of Net Worth

Female Top Wealthholders by Size of Net Worth

Male Top Wealthholders by Size of Net Worth

Female Top Wealthholders by Age

Male Top Wealthholders by Age

Top Wealthholders by State of Residence


SOI Bulletin Articles

The articles below contain detailed analysis, including some year-to-year comparisons, as well as an explanation of estimation methodology and data tables. All of the articles are in .pdf format. These articles were also published in the quarterly SOI Bulletin.

2007      2004      2001     1998     1995     1992      1989      1986

The Underlying Methodology of the Estate Multiplier Technique Recent Improvements for 1989

Preliminary Estimates of Personal Wealth, 1982: Composition of Assets

Estimates of Personal Wealth, 1982: A Second Look

Trends in Personal Wealth, 1976-1981


Research Papers

The following are research papers written by SOI analysts.  The papers below are in .pdf format.

Consider the Source: Differences in Estimates of Income and Wealth From Survey and Tax Data
Author: Barry W. Johnson                 Kevin Moore
Statistics of Income, IRS     Federal Reserve Board of Governors
This paper examines the comparability of administrative and survey data, focusing specifically on data from Federal income and estate tax returns collected by the Statistics of Income (SOI) Division of the U.S. Internal Revenue Service (IRS), and the Survey of Consumer Finances (SCF) sponsored by the Board of Governors of the Federal Reserve System.

 

Updating Techniques for Estimating Wealth from Federal Estate Tax Returns
Author: Barry W. Johnson
Statistics of Income, IRS
This paper documents the history and development of the estate multiplier technique, a statistical methodology for estimating the wealth of a living population using data reported on returns filed for wealthy decedents, with an emphasis on recent methodological improvements.

 


Additional Information

The Federal Reserve Board of Governor's triennial Survey of Consumer Finances, which is supported by the Statistics of Income Division, provides estimates of household finances, including wealth, income, and debts.  Analyses of survey results, as well as public-use data sets, can be accessed online at through the Federal Reserve.
 


File readers

Bulletin articles and research papers are available in Adobe PDF format, which requires the free Adobe Acrobat reader to view and print these files.  Data tables are available in Excel version 4.0.  A free Excel viewer is available for download, if needed.

Return to the Tax Stats home page

Page Last Reviewed or Updated: 31-Jan-2014

The Www Myfreetaxes Com Mcrsvp

Www myfreetaxes com mcrsvp 3. Www myfreetaxes com mcrsvp   Reporting Rental Income, Expenses, and Losses Table of Contents Which Forms To UseSchedule E (Form 1040) Schedule C (Form 1040), Profit or Loss From Business Qualified Joint Venture Limits on Rental LossesAt-Risk Rules Passive Activity Limits Casualties and Thefts Example Figuring the net income or loss for a residential rental activity may involve more than just listing the income and deductions on Schedule E (Form 1040). Www myfreetaxes com mcrsvp There are activities which do not qualify to use Schedule E, such as when the activity is not engaged in to make a profit or when you provide substantial services in conjunction with the property. Www myfreetaxes com mcrsvp There are also the limitations which may need to be applied if you have a net loss on Schedule E. Www myfreetaxes com mcrsvp There are two: (1) the limitation based on the amount of investment you have at risk in your rental activity, and (2) the special limits imposed on passive activities. Www myfreetaxes com mcrsvp You may also have a gain or loss related to your rental property from a casualty or theft. Www myfreetaxes com mcrsvp This is considered separately from the income and expense information you report on Schedule E. Www myfreetaxes com mcrsvp Which Forms To Use The basic form for reporting residential rental income and expenses is Schedule E (Form 1040). Www myfreetaxes com mcrsvp However, do not use that schedule to report a not-for-profit activity. Www myfreetaxes com mcrsvp See Not Rented for Profit , in chapter 4. Www myfreetaxes com mcrsvp There are also other rental situations in which forms other than Schedule E would be used. Www myfreetaxes com mcrsvp Schedule E (Form 1040) If you rent buildings, rooms, or apartments, and provide basic services such as heat and light, trash collection, etc. Www myfreetaxes com mcrsvp , you normally report your rental income and expenses on Schedule E, Part I. Www myfreetaxes com mcrsvp List your total income, expenses, and depreciation for each rental property. Www myfreetaxes com mcrsvp Be sure to enter the number of fair rental and personal use days on line 2. Www myfreetaxes com mcrsvp If you have more than three rental or royalty properties, complete and attach as many Schedules E as are needed to list the properties. Www myfreetaxes com mcrsvp Complete lines 1 and 2 for each property. Www myfreetaxes com mcrsvp However, fill in lines 23a through 26 on only one Schedule E. Www myfreetaxes com mcrsvp On Schedule E, page 1, line 18, enter the depreciation you are claiming for each property. Www myfreetaxes com mcrsvp To find out if you need to attach Form 4562, see Form 4562 , later. Www myfreetaxes com mcrsvp If you have a loss from your rental real estate activity, you also may need to complete one or both of the following forms. Www myfreetaxes com mcrsvp Form 6198, At-Risk Limitations. Www myfreetaxes com mcrsvp See At-Risk Rules , later. Www myfreetaxes com mcrsvp Also see Publication 925. Www myfreetaxes com mcrsvp Form 8582, Passive Activity Loss Limitations. Www myfreetaxes com mcrsvp See Passive Activity Limits , later. Www myfreetaxes com mcrsvp Page 2 of Schedule E is used to report income or loss from partnerships, S corporations, estates, trusts, and real estate mortgage investment conduits. Www myfreetaxes com mcrsvp If you need to use page 2 of Schedule E, be sure to use page 2 of the same Schedule E you used to enter your rental activity on page 1. Www myfreetaxes com mcrsvp Also, include the amount from line 26 (Part I) in the “Total income or (loss)” on line 41 (Part V). Www myfreetaxes com mcrsvp Form 4562. Www myfreetaxes com mcrsvp   You must complete and attach Form 4562 for rental activities only if you are claiming: Depreciation, including the special depreciation allowance, on property placed in service during 2013; Depreciation on listed property (such as a car), regardless of when it was placed in service; or Any other car expenses, including the standard mileage rate or lease expenses. Www myfreetaxes com mcrsvp Otherwise, figure your depreciation on your own worksheet. Www myfreetaxes com mcrsvp You do not have to attach these computations to your return, but you should keep them in your records for future reference. Www myfreetaxes com mcrsvp   See Publication 946 for information on preparing Form 4562. Www myfreetaxes com mcrsvp Schedule C (Form 1040), Profit or Loss From Business Generally, Schedule C is used when you provide substantial services in conjunction with the property or the rental is part of a trade or business as a real estate dealer. Www myfreetaxes com mcrsvp Providing substantial services. Www myfreetaxes com mcrsvp   If you provide substantial services that are primarily for your tenant's convenience, such as regular cleaning, changing linen, or maid service, you report your rental income and expenses on Schedule C (Form 1040), Profit or Loss From Business, or Schedule C-EZ (Form 1040), Net Profit From Business. Www myfreetaxes com mcrsvp Use Form 1065, U. Www myfreetaxes com mcrsvp S. Www myfreetaxes com mcrsvp Return of Partnership Income, if your rental activity is a partnership (including a partnership with your spouse unless it is a qualified joint venture). Www myfreetaxes com mcrsvp Substantial services do not include the furnishing of heat and light, cleaning of public areas, trash collection, etc. Www myfreetaxes com mcrsvp For information, see Publication 334, Tax Guide for Small Business. Www myfreetaxes com mcrsvp Also, you may have to pay self-employment tax on your rental income using Schedule SE (Form 1040), Self-Employment Tax. Www myfreetaxes com mcrsvp For a discussion of “substantial services,” see Real Estate Rents in Publication 334, chapter 5. Www myfreetaxes com mcrsvp Qualified Joint Venture If you and your spouse each materially participate (see Material participation under Passive Activity Limits, later) as the only members of a jointly owned and operated real estate business, and you file a joint return for the tax year, you can make a joint election to be treated as a qualified joint venture instead of a partnership. Www myfreetaxes com mcrsvp This election, in most cases, will not increase the total tax owed on the joint return, but it does give each of you credit for social security earnings on which retirement benefits are based and for Medicare coverage if your rental income is subject to self-employment tax. Www myfreetaxes com mcrsvp If you make this election, you must report rental real estate income on Schedule E (or Schedule C if you provide substantial services). Www myfreetaxes com mcrsvp You will not be required to file Form 1065 for any year the election is in effect. Www myfreetaxes com mcrsvp Rental real estate income generally is not included in net earnings from self-employment subject to self-employment tax and generally is subject to the passive activity limits. Www myfreetaxes com mcrsvp If you and your spouse filed a Form 1065 for the year prior to the election, the partnership terminates at the end of the tax year immediately preceding the year the election takes effect. Www myfreetaxes com mcrsvp For more information on qualified joint ventures, go to IRS. Www myfreetaxes com mcrsvp gov and enter “qualified joint venture” in the search box. Www myfreetaxes com mcrsvp Limits on Rental Losses If you have a loss from your rental real estate activity, two sets of rules may limit the amount of loss you can deduct. Www myfreetaxes com mcrsvp You must consider these rules in the order shown below. Www myfreetaxes com mcrsvp Both are discussed in this section. Www myfreetaxes com mcrsvp At-risk rules. Www myfreetaxes com mcrsvp These rules are applied first if there is investment in your rental real estate activity for which you are not at risk. Www myfreetaxes com mcrsvp This applies only if the real property was placed in service after 1986. Www myfreetaxes com mcrsvp Passive activity limits. Www myfreetaxes com mcrsvp Generally, rental real estate activities are considered passive activities and losses are not deductible unless you have income from other passive activities to offset them. Www myfreetaxes com mcrsvp However, there are exceptions. Www myfreetaxes com mcrsvp At-Risk Rules You may be subject to the at-risk rules if you have: A loss from an activity carried on as a trade or business or for the production of income, and Amounts invested in the activity for which you are not fully at risk. Www myfreetaxes com mcrsvp Losses from holding real property (other than mineral property) placed in service before 1987 are not subject to the at-risk rules. Www myfreetaxes com mcrsvp In most cases, any loss from an activity subject to the at-risk rules is allowed only to the extent of the total amount you have at risk in the activity at the end of the tax year. Www myfreetaxes com mcrsvp You are considered at risk in an activity to the extent of cash and the adjusted basis of other property you contributed to the activity and certain amounts borrowed for use in the activity. Www myfreetaxes com mcrsvp Any loss that is disallowed because of the at-risk limits is treated as a deduction from the same activity in the next tax year. Www myfreetaxes com mcrsvp See Publication 925 for a discussion of the at-risk rules. Www myfreetaxes com mcrsvp Form 6198. Www myfreetaxes com mcrsvp   If you are subject to the at-risk rules, file Form 6198, At-Risk Limitations, with your tax return. Www myfreetaxes com mcrsvp Passive Activity Limits In most cases, all rental real estate activities (except those of certain real estate professionals, discussed later) are passive activities. Www myfreetaxes com mcrsvp For this purpose, a rental activity is an activity from which you receive income mainly for the use of tangible property, rather than for services. Www myfreetaxes com mcrsvp For a discussion of activities that are not considered rental activities, see Rental Activities in Publication 925. Www myfreetaxes com mcrsvp Deductions or losses from passive activities are limited. Www myfreetaxes com mcrsvp You generally cannot offset income, other than passive income, with losses from passive activities. Www myfreetaxes com mcrsvp Nor can you offset taxes on income, other than passive income, with credits resulting from passive activities. Www myfreetaxes com mcrsvp Any excess loss or credit is carried forward to the next tax year. Www myfreetaxes com mcrsvp Exceptions to the rules for figuring passive activity limits for personal use of a dwelling unit and for rental real estate with active participation are discussed later. Www myfreetaxes com mcrsvp For a detailed discussion of these rules, see Publication 925. Www myfreetaxes com mcrsvp Real estate professionals. Www myfreetaxes com mcrsvp   If you are a real estate professional, complete line 43 of Schedule E. Www myfreetaxes com mcrsvp      You qualify as a real estate professional for the tax year if you meet both of the following requirements. Www myfreetaxes com mcrsvp More than half of the personal services you perform in all trades or businesses during the tax year are performed in real property trades or businesses in which you materially participate. Www myfreetaxes com mcrsvp You perform more than 750 hours of services during the tax year in real property trades or businesses in which you materially participate. Www myfreetaxes com mcrsvp If you qualify as a real estate professional, rental real estate activities in which you materially participated are not passive activities. Www myfreetaxes com mcrsvp For purposes of determining whether you materially participated in your rental real estate activities, each interest in rental real estate is a separate activity unless you elect to treat all your interests in rental real estate as one activity. Www myfreetaxes com mcrsvp   Do not count personal services you perform as an employee in real property trades or businesses unless you are a 5% owner of your employer. Www myfreetaxes com mcrsvp You are a 5% owner if you own (or are considered to own) more than 5% of your employer's outstanding stock, or capital or profits interest. Www myfreetaxes com mcrsvp   Do not count your spouse's personal services to determine whether you met the requirements listed earlier to qualify as a real estate professional. Www myfreetaxes com mcrsvp However, you can count your spouse's participation in an activity in determining if you materially participated. Www myfreetaxes com mcrsvp Real property trades or businesses. Www myfreetaxes com mcrsvp   A real property trade or business is a trade or business that does any of the following with real property. Www myfreetaxes com mcrsvp Develops or redevelops it. Www myfreetaxes com mcrsvp Constructs or reconstructs it. Www myfreetaxes com mcrsvp Acquires it. Www myfreetaxes com mcrsvp Converts it. Www myfreetaxes com mcrsvp Rents or leases it. Www myfreetaxes com mcrsvp Operates or manages it. Www myfreetaxes com mcrsvp Brokers it. Www myfreetaxes com mcrsvp Choice to treat all interests as one activity. Www myfreetaxes com mcrsvp   If you were a real estate professional and had more than one rental real estate interest during the year, you can choose to treat all the interests as one activity. Www myfreetaxes com mcrsvp You can make this choice for any year that you qualify as a real estate professional. Www myfreetaxes com mcrsvp If you forgo making the choice for one year, you can still make it for a later year. Www myfreetaxes com mcrsvp   If you make the choice, it is binding for the tax year you make it and for any later year that you are a real estate professional. Www myfreetaxes com mcrsvp This is true even if you are not a real estate professional in any intervening year. Www myfreetaxes com mcrsvp (For that year, the exception for real estate professionals will not apply in determining whether your activity is subject to the passive activity rules. Www myfreetaxes com mcrsvp )   See the Instructions for Schedule E for information about making this choice. Www myfreetaxes com mcrsvp Material participation. Www myfreetaxes com mcrsvp   Generally, you materially participated in an activity for the tax year if you were involved in its operations on a regular, continuous, and substantial basis during the year. Www myfreetaxes com mcrsvp For details, see Publication 925 or the Instructions for Schedule C. Www myfreetaxes com mcrsvp Participating spouse. Www myfreetaxes com mcrsvp   If you are married, determine whether you materially participated in an activity by also counting any participation in the activity by your spouse during the year. Www myfreetaxes com mcrsvp Do this even if your spouse owns no interest in the activity or files a separate return for the year. Www myfreetaxes com mcrsvp Form 8582. Www myfreetaxes com mcrsvp    You may have to complete Form 8582 to figure the amount of any passive activity loss for the current tax year for all activities and the amount of the passive activity loss allowed on your tax return. Www myfreetaxes com mcrsvp See Form 8582 not required , later in this chapter, to determine if you must complete Form 8582. Www myfreetaxes com mcrsvp   If you are required to complete Form 8582 and are also subject to the at-risk rules, include the amount from Form 6198, line 21 (deductible loss) in column (b) of Form 8582, Worksheet 1 or 3, as required. Www myfreetaxes com mcrsvp Exception for Personal Use of Dwelling Unit If you used the rental property as a home during the year, any income, deductions, gain, or loss allocable to such use shall not be taken into account for purposes of the passive activity loss limitation. Www myfreetaxes com mcrsvp Instead, follow the rules explained in chapter 5, Personal Use of Dwelling Unit (Including Vacation Home). Www myfreetaxes com mcrsvp Exception for Rental Real Estate With Active Participation If you or your spouse actively participated in a passive rental real estate activity, you may be able to deduct up to $25,000 of loss from the activity from your nonpassive income. Www myfreetaxes com mcrsvp This special allowance is an exception to the general rule disallowing losses in excess of income from passive activities. Www myfreetaxes com mcrsvp Similarly, you may be able to offset credits from the activity against the tax on up to $25,000 of nonpassive income after taking into account any losses allowed under this exception. Www myfreetaxes com mcrsvp Example. Www myfreetaxes com mcrsvp Jane is single and has $40,000 in wages, $2,000 of passive income from a limited partnership, and $3,500 of passive loss from a rental real estate activity in which she actively participated. Www myfreetaxes com mcrsvp $2,000 of Jane's $3,500 loss offsets her passive income. Www myfreetaxes com mcrsvp The remaining $1,500 loss can be deducted from her $40,000 wages. Www myfreetaxes com mcrsvp The special allowance is not available if you were married, lived with your spouse at any time during the year, and are filing a separate return. Www myfreetaxes com mcrsvp Active participation. Www myfreetaxes com mcrsvp   You actively participated in a rental real estate activity if you (and your spouse) owned at least 10% of the rental property and you made management decisions or arranged for others to provide services (such as repairs) in a significant and bona fide sense. Www myfreetaxes com mcrsvp Management decisions that may count as active participation include approving new tenants, deciding on rental terms, approving expenditures, and other similar decisions. Www myfreetaxes com mcrsvp Example. Www myfreetaxes com mcrsvp Mike is single and had the following income and losses during the tax year:   Salary $42,300     Dividends 300     Interest 1,400     Rental loss (4,000)   The rental loss was from the rental of a house Mike owned. Www myfreetaxes com mcrsvp Mike had advertised and rented the house to the current tenant himself. Www myfreetaxes com mcrsvp He also collected the rents, which usually came by mail. Www myfreetaxes com mcrsvp All repairs were either made or contracted out by Mike. Www myfreetaxes com mcrsvp Although the rental loss is from a passive activity, because Mike actively participated in the rental property management he can use the entire $4,000 loss to offset his other income. Www myfreetaxes com mcrsvp Maximum special allowance. Www myfreetaxes com mcrsvp   The maximum special allowance is: $25,000 for single individuals and married individuals filing a joint return for the tax year, $12,500 for married individuals who file separate returns for the tax year and lived apart from their spouses at all times during the tax year, and $25,000 for a qualifying estate reduced by the special allowance for which the surviving spouse qualified. Www myfreetaxes com mcrsvp   If your modified adjusted gross income (MAGI) is $100,000 or less ($50,000 or less if married filing separately), you can deduct your loss up to the amount specified above. Www myfreetaxes com mcrsvp If your MAGI is more than $100,000 (more than $50,000 if married filing separately), your special allowance is limited to 50% of the difference between $150,000 ($75,000 if married filing separately) and your MAGI. Www myfreetaxes com mcrsvp   Generally, if your MAGI is $150,000 or more ($75,000 or more if you are married filing separately), there is no special allowance. Www myfreetaxes com mcrsvp Modified adjusted gross income (MAGI). Www myfreetaxes com mcrsvp   This is your adjusted gross income from Form 1040, U. Www myfreetaxes com mcrsvp S. Www myfreetaxes com mcrsvp Individual Income Tax Return, line 38, or Form 1040NR, U. Www myfreetaxes com mcrsvp S. Www myfreetaxes com mcrsvp Nonresident Alien Income Tax Return, line 37, figured without taking into account: The taxable amount of social security or equivalent tier 1 railroad retirement benefits, The deductible contributions to traditional individual retirement accounts (IRAs) and section 501(c)(18) pension plans, The exclusion from income of interest from Series EE and I U. Www myfreetaxes com mcrsvp S. Www myfreetaxes com mcrsvp savings bonds used to pay higher educational expenses, The exclusion of amounts received under an employer's adoption assistance program, Any passive activity income or loss included on Form 8582, Any rental real estate loss allowed to real estate professionals, Any overall loss from a publicly traded partnership (see Publicly Traded Partnerships (PTPs) in the Instructions for Form 8582), The deduction allowed for one-half of self-employment tax, The deduction allowed for interest paid on student loans, The deduction for qualified tuition and related fees, and The domestic production activities deduction (see the Instructions for Form 8903). Www myfreetaxes com mcrsvp Form 8582 not required. Www myfreetaxes com mcrsvp   Do not complete Form 8582 if you meet all of the following conditions. Www myfreetaxes com mcrsvp Your only passive activities were rental real estate activities in which you actively participated. Www myfreetaxes com mcrsvp Your overall net loss from these activities is $25,000 or less ($12,500 or less if married filing separately and you lived apart from your spouse all year). Www myfreetaxes com mcrsvp If married filing separately, you lived apart from your spouse all year. Www myfreetaxes com mcrsvp You have no prior year unallowed losses from these (or any other passive) activities. Www myfreetaxes com mcrsvp You have no current or prior year unallowed credits from passive activities. Www myfreetaxes com mcrsvp Your MAGI is $100,000 or less ($50,000 or less if married filing separately and you lived apart from your spouse all year). Www myfreetaxes com mcrsvp You do not hold any interest in a rental real estate activity as a limited partner or as a beneficiary of an estate or a trust. Www myfreetaxes com mcrsvp   If you meet all of the conditions listed above, your rental real estate activities are not limited by the passive activity rules and you do not have to complete Form 8582. Www myfreetaxes com mcrsvp On lines 23a through 23e of your Schedule E, enter the applicable amounts. Www myfreetaxes com mcrsvp Casualties and Thefts As a result of a casualty or theft, you may have a loss related to your rental property. Www myfreetaxes com mcrsvp You may be able to deduct the loss on your income tax return. Www myfreetaxes com mcrsvp Casualty. Www myfreetaxes com mcrsvp   This is the damage, destruction, or loss of property resulting from an identifiable event that is sudden, unexpected, or unusual. Www myfreetaxes com mcrsvp Such events include a storm, fire, or earthquake. Www myfreetaxes com mcrsvp Theft. Www myfreetaxes com mcrsvp   This is defined as the unlawful taking and removing of your money or property with the intent to deprive you of it. Www myfreetaxes com mcrsvp Gain from casualty or theft. Www myfreetaxes com mcrsvp   It is also possible to have a gain from a casualty or theft if you receive money, including insurance, that is more than your adjusted basis in the property. Www myfreetaxes com mcrsvp Generally, you must report this gain. Www myfreetaxes com mcrsvp However, under certain circumstances, you may defer paying tax by choosing to postpone reporting the gain. Www myfreetaxes com mcrsvp To do this, you generally must buy replacement property within 2 years after the close of the first tax year in which any part of your gain is realized. Www myfreetaxes com mcrsvp In certain circumstances, the replacement period can be greater than 2 years; see Replacement Period in Publication 547 for more information. Www myfreetaxes com mcrsvp The cost of the replacement property must be equal to or more than the net insurance or other payment you received. Www myfreetaxes com mcrsvp More information. Www myfreetaxes com mcrsvp   For information on business and nonbusiness casualty and theft losses, see Publication 547. Www myfreetaxes com mcrsvp How to report. Www myfreetaxes com mcrsvp    If you had a casualty or theft that involved property used in your rental activity, figure the net gain or loss in Section B of Form 4684, Casualties and Thefts. Www myfreetaxes com mcrsvp Follow the Instructions for Form 4684 for where to carry your net gain or loss. Www myfreetaxes com mcrsvp Example In February 2008, Marie Pfister bought a rental house for $135,000 (house $120,000 and land $15,000) and immediately began renting it out. Www myfreetaxes com mcrsvp In 2013, she rented it all 12 months for a monthly rental fee of $1,125. Www myfreetaxes com mcrsvp In addition to her rental income of $13,500 (12 x $1,125), Marie had the following expenses. Www myfreetaxes com mcrsvp Mortgage interest $8,000 Fire insurance (1-year policy) 250 Miscellaneous repairs 400 Real estate taxes imposed and paid 500 Maintenance 200 Marie depreciates the residential rental property under MACRS GDS. Www myfreetaxes com mcrsvp This means using the straight line method over a recovery period of 27. Www myfreetaxes com mcrsvp 5 years. Www myfreetaxes com mcrsvp She uses Table 2-2d to find her depreciation percentage. Www myfreetaxes com mcrsvp Because she placed the property in service in February 2008, she continues to use that row of Table 2-2d. Www myfreetaxes com mcrsvp For year 6, the rate is 3. Www myfreetaxes com mcrsvp 636%. Www myfreetaxes com mcrsvp Marie figures her net rental income or loss for the house as follows: Total rental income received  ($1,125 × 12) $13,500 Minus: Expenses     Mortgage interest $8,000   Fire insurance 250   Miscellaneous repairs 400   Real estate taxes 500   Maintenance 200   Total expenses 9,350 Balance $4,150 Minus: Depreciation ($120,000 x 3. Www myfreetaxes com mcrsvp 636%) 4,363 Net rental (loss) for house ($213)       Marie had a net loss for the year. Www myfreetaxes com mcrsvp Because she actively participated in her passive rental real estate activity and her loss was less than $25,000, she can deduct the loss on her return. Www myfreetaxes com mcrsvp Marie also meets all of the requirements for not having to file Form 8582. Www myfreetaxes com mcrsvp She uses Schedule E, Part I, to report her rental income and expenses. Www myfreetaxes com mcrsvp She enters her income, expenses, and depreciation for the house in the column for Property A and enters her loss on line 22. Www myfreetaxes com mcrsvp Form 4562 is not required. Www myfreetaxes com mcrsvp Prev  Up  Next   Home   More Online Publications