File your Taxes for Free!
  • Get your maximum refund*
  • 100% accurate calculations guaranteed*

TurboTax Federal Free Edition - File Taxes Online

Don't let filing your taxes get you down! We'll help make it as easy as possible. With e-file and direct deposit, there's no faster way to get your refund!

Approved TurboTax Affiliate Site. TurboTax and TurboTax Online, among others, are registered trademarks and/or service marks of Intuit Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.


© 2012 - 2018 All rights reserved.

This is an Approved TurboTax Affiliate site. TurboTax and TurboTax Online, among other are registered trademarks and/or service marks of Intuit, Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.
When discussing "Free e-file", note that state e-file is an additional fee. E-file fees do not apply to New York state returns. Prices are subject to change without notice. E-file and get your refund faster
*If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
*Maximum Refund Guarantee - or Your Money Back: If you get a larger refund or smaller tax due from another tax preparation method, we'll refund the applicable TurboTax federal and/or state purchase price paid. TurboTax Federal Free Edition customers are entitled to payment of $14.99 and a refund of your state purchase price paid. Claims must be submitted within sixty (60) days of your TurboTax filing date and no later than 6/15/14. E-file, Audit Defense, Professional Review, Refund Transfer and technical support fees are excluded. This guarantee cannot be combined with the TurboTax Satisfaction (Easy) Guarantee. *We're so confident your return will be done right, we guarantee it. Accurate calculations guaranteed. If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
https://turbotax.intuit.com/corp/guarantees.jsp

1040nr Ez Download

How To File Amended ReturnInstructionsCan I Do My 2012 Taxes NowIncome Tax Return Form 2012State Income Tax FormFile Amended Tax Return 2009H&r Block Federal FreeEfile 2009 TaxesHelp Filing 1040xFile Amended Tax Return 2011 OnlineWhere To File Amended 1040xFederal 1040x FormEz FormsFree Turbotax 20101040ez Free FilingTax Return 2013Federal Tax Form 2012HrblockfreetaxTax Software2009 Turbotax DownloadFree 1040ez Form1040x Online FormForm 1040ez 20121040 Nr Tax Form1040nr Tax ReturnOhio 1040xH&r Block Free State File1040ezFree Tax Return Online1099 Form1040 Ez 2010 Form2012 Tax FormsCan You E File An Amended 1040xHow To Refile TaxesFree File State And Federal Taxes OnlineHrblockonlineIrs Short FormState Franchise Tax FormsFree State Turbo Tax 2012Need Amend My 2009 Taxes

1040nr Ez Download

1040nr ez download 2. 1040nr ez download   Entertainment Table of Contents Directly-Related Test Associated TestMeetings at conventions. 1040nr ez download 50% LimitExceptions to the 50% Limit What Entertainment Expenses Are Deductible?A meal as a form of entertainment. 1040nr ez download Deduction may depend on your type of business. 1040nr ez download Exception for events that benefit charitable organizations. 1040nr ez download Food and beverages in skybox seats. 1040nr ez download What Entertainment Expenses Are Not Deductible?Out-of-pocket expenses. 1040nr ez download You may be able to deduct business-related entertainment expenses you have for entertaining a client, customer, or employee. 1040nr ez download The rules and definitions are summarized in Table 2-1 . 1040nr ez download You can deduct entertainment expenses only if they are both ordinary and necessary and meet one of the following tests. 1040nr ez download Directly-related test. 1040nr ez download Associated test. 1040nr ez download Both of these tests are explained later. 1040nr ez download An ordinary expense is one that is common and accepted in your trade or business. 1040nr ez download A necessary expense is one that is helpful and appropriate for your business. 1040nr ez download An expense does not have to be required to be considered necessary. 1040nr ez download The amount you can deduct for entertainment expenses may be limited. 1040nr ez download Generally, you can deduct only 50% of your unreimbursed entertainment expenses. 1040nr ez download This limit is discussed later under 50% Limit. 1040nr ez download Directly-Related Test To meet the directly-related test for entertainment expenses (including entertainment-related meals), you must show that: The main purpose of the combined business and entertainment was the active conduct of business, You did engage in business with the person during the entertainment period, and You had more than a general expectation of getting income or some other specific business benefit at some future time. 1040nr ez download Business is generally not considered to be the main purpose when business and entertainment are combined on hunting or fishing trips, or on yachts or other pleasure boats. 1040nr ez download Even if you show that business was the main purpose, you generally cannot deduct the expenses for the use of an entertainment facility. 1040nr ez download See Entertainment facilities under What Entertainment Expenses Are Not Deductible? later in this chapter. 1040nr ez download You must consider all the facts, including the nature of the business transacted and the reasons for conducting business during the entertainment. 1040nr ez download It is not necessary to devote more time to business than to entertainment. 1040nr ez download However, if the business discussion is only incidental to the entertainment, the entertainment expenses do not meet the directly-related test. 1040nr ez download Table 2-1. 1040nr ez download When Are Entertainment Expenses Deductible? General rule You can deduct ordinary and necessary expenses to entertain a client, customer, or employee if the expenses meet the directly-related test or the associated test. 1040nr ez download Definitions Entertainment includes any activity generally considered to provide entertainment, amusement, or recreation, and includes meals provided to a customer or client. 1040nr ez download An ordinary expense is one that is common and accepted in your trade or business. 1040nr ez download A necessary expense is one that is helpful and appropriate. 1040nr ez download Tests to be met Directly-related test Entertainment took place in a clear business setting, or Main purpose of entertainment was the active conduct of business, and You did engage in business with the person during the entertainment period, and You had more than a general expectation of getting income or some other specific business benefit. 1040nr ez download   Associated test Entertainment is associated with your trade or business, and Entertainment is directly before or after a substantial business discussion. 1040nr ez download Other rules You cannot deduct the cost of your meal as an entertainment expense if you are claiming the meal as a travel expense. 1040nr ez download You cannot deduct expenses that are lavish or extravagant under the circumstances. 1040nr ez download You generally can deduct only 50% of your unreimbursed entertainment expenses (see 50% Limit ). 1040nr ez download You do not have to show that business income or other business benefit actually resulted from each entertainment expense. 1040nr ez download Clear business setting. 1040nr ez download   If the entertainment takes place in a clear business setting and is for your business or work, the expenses are considered directly related to your business or work. 1040nr ez download The following situations are examples of entertainment in a clear business setting. 1040nr ez download Entertainment in a hospitality room at a convention where business goodwill is created through the display or discussion of business products. 1040nr ez download Entertainment that is mainly a price rebate on the sale of your products (such as a restaurant owner providing an occasional free meal to a loyal customer). 1040nr ez download Entertainment of a clear business nature occurring under circumstances where there is no meaningful personal or social relationship between you and the persons entertained. 1040nr ez download An example is entertainment of business and civic leaders at the opening of a new hotel or play when the purpose is to get business publicity rather than to create or maintain the goodwill of the persons entertained. 1040nr ez download Expenses not considered directly related. 1040nr ez download   Entertainment expenses generally are not considered directly related if you are not there or in situations where there are substantial distractions that generally prevent you from actively conducting business. 1040nr ez download The following are examples of situations where there are substantial distractions. 1040nr ez download A meeting or discussion at a nightclub, theater, or sporting event. 1040nr ez download A meeting or discussion during what is essentially a social gathering, such as a cocktail party. 1040nr ez download A meeting with a group that includes persons who are not business associates at places such as cocktail lounges, country clubs, golf clubs, athletic clubs, or vacation resorts. 1040nr ez download Associated Test Even if your expenses do not meet the directly-related test, they may meet the associated test. 1040nr ez download To meet the associated test for entertainment expenses (including entertainment-related meals), you must show that the entertainment is: Associated with the active conduct of your trade or business, and Directly before or after a substantial business discussion (defined later). 1040nr ez download Associated with trade or business. 1040nr ez download   Generally, an expense is associated with the active conduct of your trade or business if you can show that you had a clear business purpose for having the expense. 1040nr ez download The purpose may be to get new business or to encourage the continuation of an existing business relationship. 1040nr ez download Substantial business discussion. 1040nr ez download   Whether a business discussion is substantial depends on the facts of each case. 1040nr ez download A business discussion will not be considered substantial unless you can show that you actively engaged in the discussion, meeting, negotiation, or other business transaction to get income or some other specific business benefit. 1040nr ez download   The meeting does not have to be for any specified length of time, but you must show that the business discussion was substantial in relation to the meal or entertainment. 1040nr ez download It is not necessary that you devote more time to business than to entertainment. 1040nr ez download You do not have to discuss business during the meal or entertainment. 1040nr ez download Meetings at conventions. 1040nr ez download   You are considered to have a substantial business discussion if you attend meetings at a convention or similar event, or at a trade or business meeting sponsored and conducted by a business or professional organization. 1040nr ez download However, your reason for attending the convention or meeting must be to further your trade or business. 1040nr ez download The organization that sponsors the convention or meeting must schedule a program of business activities that is the main activity of the convention or meeting. 1040nr ez download Directly before or after business discussion. 1040nr ez download   If the entertainment is held on the same day as the business discussion, it is considered to be held directly before or after the business discussion. 1040nr ez download   If the entertainment and the business discussion are not held on the same day, you must consider the facts of each case to see if the associated test is met. 1040nr ez download Among the facts to consider are the place, date, and duration of the business discussion. 1040nr ez download If you or your business associates are from out of town, you must also consider the dates of arrival and departure, and the reasons the entertainment and the discussion did not take place on the same day. 1040nr ez download Example. 1040nr ez download A group of business associates comes from out of town to your place of business to hold a substantial business discussion. 1040nr ez download If you entertain those business guests on the evening before the business discussion, or on the evening of the day following the business discussion, the entertainment generally is considered to be held directly before or after the discussion. 1040nr ez download The expense meets the associated test. 1040nr ez download 50% Limit In general, you can deduct only 50% of your business-related meal and entertainment expenses. 1040nr ez download (If you are subject to the Department of Transportation's “hours of service” limits, you can deduct 80% of your business-related meal and entertainment expenses. 1040nr ez download See Individuals subject to “hours of service” limits , later. 1040nr ez download ) The 50% limit applies to employees or their employers, and to self-employed persons (including independent contractors) or their clients, depending on whether the expenses are reimbursed. 1040nr ez download Figure A summarizes the general rules explained in this section. 1040nr ez download The 50% limit applies to business meals or entertainment expenses you have while: Traveling away from home (whether eating alone or with others) on business, Entertaining customers at your place of business, a restaurant, or other location, or Attending a business convention or reception, business meeting, or business luncheon at a club. 1040nr ez download Included expenses. 1040nr ez download   Expenses subject to the 50% limit include: Taxes and tips relating to a business meal or entertainment activity, Cover charges for admission to a nightclub, Rent paid for a room in which you hold a dinner or cocktail party, and Amounts paid for parking at a sports arena. 1040nr ez download However, the cost of transportation to and from a business meal or a business-related entertainment activity is not subject to the 50% limit. 1040nr ez download Figure A. 1040nr ez download Does the 50% Limit Apply to Your Expenses? There are exceptions to these rules. 1040nr ez download See Exceptions to the 50% Limit . 1040nr ez download Please click here for the text description of the image. 1040nr ez download Figure A. 1040nr ez download Does the 50% limit apply to Your Expenses?TAs for Figure A are: Notice 87-23; Form 2106 instructions Application of 50% limit. 1040nr ez download   The 50% limit on meal and entertainment expenses applies if the expense is otherwise deductible and is not covered by one of the exceptions discussed later. 1040nr ez download   The 50% limit also applies to certain meal and entertainment expenses that are not business related. 1040nr ez download It applies to meal and entertainment expenses you have for the production of income, including rental or royalty income. 1040nr ez download It also applies to the cost of meals included in deductible educational expenses. 1040nr ez download When to apply the 50% limit. 1040nr ez download   You apply the 50% limit after determining the amount that would otherwise qualify for a deduction. 1040nr ez download You first have to determine the amount of meal and entertainment expenses that would be deductible under the other rules discussed in this publication. 1040nr ez download Example 1. 1040nr ez download You spend $200 for a business-related meal. 1040nr ez download If $110 of that amount is not allowable because it is lavish and extravagant, the remaining $90 is subject to the 50% limit. 1040nr ez download Your deduction cannot be more than $45 (50% × $90). 1040nr ez download Example 2. 1040nr ez download You purchase two tickets to a concert and give them to a client. 1040nr ez download You purchased the tickets through a ticket agent. 1040nr ez download You paid $200 for the two tickets, which had a face value of $80 each ($160 total). 1040nr ez download Your deduction cannot be more than $80 (50% × $160). 1040nr ez download Exceptions to the 50% Limit Generally, business-related meal and entertainment expenses are subject to the 50% limit. 1040nr ez download Figure A can help you determine if the 50% limit applies to you. 1040nr ez download Expenses not subject to 50% limit. 1040nr ez download   Your meal or entertainment expense is not subject to the 50% limit if the expense meets one of the following exceptions. 1040nr ez download 1 - Employee's reimbursed expenses. 1040nr ez download   If you are an employee, you are not subject to the 50% limit on expenses for which your employer reimburses you under an accountable plan. 1040nr ez download Accountable plans are discussed in chapter 6. 1040nr ez download 2 - Self-employed. 1040nr ez download   If you are self-employed, your deductible meal and entertainment expenses are not subject to the 50% limit if all of the following requirements are met. 1040nr ez download You have these expenses as an independent contractor. 1040nr ez download Your customer or client reimburses you or gives you an allowance for these expenses in connection with services you perform. 1040nr ez download You provide adequate records of these expenses to your customer or client. 1040nr ez download (See chapter 5 . 1040nr ez download )   In this case, your client or customer is subject to the 50% limit on the expenses. 1040nr ez download Example. 1040nr ez download You are a self-employed attorney who adequately accounts for meal and entertainment expenses to a client who reimburses you for these expenses. 1040nr ez download You are not subject to the directly-related or associated test, nor are you subject to the 50% limit. 1040nr ez download If the client can deduct the expenses, the client is subject to the 50% limit. 1040nr ez download If you (as an independent contractor) have expenses for meals and entertainment related to providing services for a client but do not adequately account for and seek reimbursement from the client for those expenses, you are subject to the directly-related or associated test and to the 50% limit. 1040nr ez download 3 - Advertising expenses. 1040nr ez download   You are not subject to the 50% limit if you provide meals, entertainment, or recreational facilities to the general public as a means of advertising or promoting goodwill in the community. 1040nr ez download For example, neither the expense of sponsoring a television or radio show nor the expense of distributing free food and beverages to the general public is subject to the 50% limit. 1040nr ez download 4 - Sale of meals or entertainment. 1040nr ez download   You are not subject to the 50% limit if you actually sell meals, entertainment, goods and services, or use of facilities to the public. 1040nr ez download For example, if you run a nightclub, your expense for the entertainment you furnish to your customers, such as a floor show, is not subject to the 50% limit. 1040nr ez download 5 - Charitable sports event. 1040nr ez download   You are not subject to the 50% limit if you pay for a package deal that includes a ticket to a qualified charitable sports event. 1040nr ez download For the conditions the sports event must meet, see Exception for events that benefit charitable organizations under What Entertainment Expenses Are Deductible?, later. 1040nr ez download Individuals subject to “hours of service” limits. 1040nr ez download   You can deduct a higher percentage of your meal expenses while traveling away from your tax home if the meals take place during or incident to any period subject to the Department of Transportation's “hours of service” limits. 1040nr ez download The percentage is 80%. 1040nr ez download   Individuals subject to the Department of Transportation's “hours of service” limits include the following persons. 1040nr ez download Certain air transportation workers (such as pilots, crew, dispatchers, mechanics, and control tower operators) who are under Federal Aviation Administration regulations. 1040nr ez download Interstate truck operators and bus drivers who are under Department of Transportation regulations. 1040nr ez download Certain railroad employees (such as engineers, conductors, train crews, dispatchers, and control operations personnel) who are under Federal Railroad Administration regulations. 1040nr ez download Certain merchant mariners who are under Coast Guard regulations. 1040nr ez download What Entertainment Expenses Are Deductible? This section explains different types of entertainment expenses you may be able to deduct. 1040nr ez download Entertainment. 1040nr ez download   Entertainment includes any activity generally considered to provide entertainment, amusement, or recreation. 1040nr ez download Examples include entertaining guests at nightclubs; at social, athletic, and sporting clubs; at theaters; at sporting events; on yachts; or on hunting, fishing, vacation, and similar trips. 1040nr ez download   Entertainment also may include meeting personal, living, or family needs of individuals, such as providing meals, a hotel suite, or a car to customers or their families. 1040nr ez download A meal as a form of entertainment. 1040nr ez download   Entertainment includes the cost of a meal you provide to a customer or client, whether the meal is a part of other entertainment or by itself. 1040nr ez download A meal expense includes the cost of food, beverages, taxes, and tips for the meal. 1040nr ez download To deduct an entertainment-related meal, you or your employee must be present when the food or beverages are provided. 1040nr ez download    You cannot claim the cost of your meal both as an entertainment expense and as a travel expense. 1040nr ez download    Meals sold in the normal course of your business are not considered entertainment. 1040nr ez download Deduction may depend on your type of business. 1040nr ez download   Your kind of business may determine if a particular activity is considered entertainment. 1040nr ez download For example, if you are a dress designer and have a fashion show to introduce your new designs to store buyers, the show generally is not considered entertainment. 1040nr ez download This is because fashion shows are typical in your business. 1040nr ez download But, if you are an appliance distributor and hold a fashion show for the spouses of your retailers, the show generally is considered entertainment. 1040nr ez download Separating costs. 1040nr ez download   If you have one expense that includes the costs of entertainment and other services (such as lodging or transportation), you must allocate that expense between the cost of entertainment and the cost of other services. 1040nr ez download You must have a reasonable basis for making this allocation. 1040nr ez download For example, you must allocate your expenses if a hotel includes entertainment in its lounge on the same bill with your room charge. 1040nr ez download Taking turns paying for meals or entertainment. 1040nr ez download   If a group of business acquaintances takes turns picking up each others' meal or entertainment checks primarily for personal reasons, without regard to whether any business purposes are served, no member of the group can deduct any part of the expense. 1040nr ez download Lavish or extravagant expenses. 1040nr ez download   You cannot deduct expenses for entertainment that are lavish or extravagant. 1040nr ez download An expense is not considered lavish or extravagant if it is reasonable considering the facts and circumstances. 1040nr ez download Expenses will not be disallowed just because they are more than a fixed dollar amount or take place at deluxe restaurants, hotels, nightclubs, or resorts. 1040nr ez download Allocating between business and nonbusiness. 1040nr ez download   If you entertain business and nonbusiness individuals at the same event, you must divide your entertainment expenses between business and nonbusiness. 1040nr ez download You can deduct only the business part. 1040nr ez download If you cannot establish the part of the expense for each person participating, allocate the expense to each participant on a pro rata basis. 1040nr ez download Example. 1040nr ez download You entertain a group of individuals that includes yourself, three business prospects, and seven social guests. 1040nr ez download Only 4/11 of the expense qualifies as a business entertainment expense. 1040nr ez download You cannot deduct the expenses for the seven social guests because those costs are nonbusiness expenses. 1040nr ez download Trade association meetings. 1040nr ez download   You can deduct entertainment expenses that are directly related to and necessary for attending business meetings or conventions of certain exempt organizations if the expenses of your attendance are related to your active trade or business. 1040nr ez download These organizations include business leagues, chambers of commerce, real estate boards, trade associations, and professional associations. 1040nr ez download Entertainment tickets. 1040nr ez download   Generally, you cannot deduct more than the face value of an entertainment ticket, even if you paid a higher price. 1040nr ez download For example, you cannot deduct service fees you pay to ticket agencies or brokers or any amount over the face value of the tickets you pay to scalpers. 1040nr ez download Exception for events that benefit charitable organizations. 1040nr ez download   Different rules apply when the cost of a ticket to a sports event benefits a charitable organization. 1040nr ez download You can take into account the full cost you pay for the ticket, even if it is more than the face value, if all of the following conditions apply. 1040nr ez download The event's main purpose is to benefit a qualified charitable organization. 1040nr ez download The entire net proceeds go to the charity. 1040nr ez download The event uses volunteers to perform substantially all the event's work. 1040nr ez download    The 50% limit on entertainment does not apply to any expense for a package deal that includes a ticket to such a charitable sports event. 1040nr ez download Example 1. 1040nr ez download You purchase tickets to a golf tournament organized by the local volunteer fire company. 1040nr ez download All net proceeds will be used to buy new fire equipment. 1040nr ez download The volunteers will run the tournament. 1040nr ez download You can deduct the entire cost of the tickets as a business expense if they otherwise qualify as an entertainment expense. 1040nr ez download Example 2. 1040nr ez download You purchase tickets to a college football game through a ticket broker. 1040nr ez download After having a business discussion, you take a client to the game. 1040nr ez download Net proceeds from the game go to colleges that qualify as charitable organizations. 1040nr ez download However, since the colleges also pay individuals to perform services, such as coaching and recruiting, you can only use the face value of the tickets in determining your business deduction. 1040nr ez download Skyboxes and other private luxury boxes. 1040nr ez download   If you rent a skybox or other private luxury box for more than one event at the same sports arena, you generally cannot deduct more than the price of a nonluxury box seat ticket. 1040nr ez download   To determine whether a skybox has been rented for more than one event, count each game or other performance as one event. 1040nr ez download For example, renting a skybox for a series of playoff games is considered renting it for more than one event. 1040nr ez download All skyboxes you rent in the same arena, along with any rentals by related parties, are considered in making this determination. 1040nr ez download   Related parties include: Family members (spouses, ancestors, and lineal descendants), Parties who have made a reciprocal arrangement involving the sharing of skyboxes, Related corporations, A partnership and its principal partners, and A corporation and a partnership with common ownership. 1040nr ez download Example. 1040nr ez download You pay $3,000 to rent a 10-seat skybox at Team Stadium for three baseball games. 1040nr ez download The cost of regular nonluxury box seats at each event is $30 a seat. 1040nr ez download You can deduct (subject to the 50% limit) $900 ((10 seats × $30 each) × 3 events). 1040nr ez download Food and beverages in skybox seats. 1040nr ez download   If expenses for food and beverages are separately stated, you can deduct these expenses in addition to the amounts allowable for the skybox, subject to the requirements and limits that apply. 1040nr ez download The amounts separately stated for food and beverages must be reasonable. 1040nr ez download You cannot inflate the charges for food and beverages to avoid the limited deduction for skybox rentals. 1040nr ez download What Entertainment Expenses Are Not Deductible? This section explains different types of entertainment expenses you generally may not be able to deduct. 1040nr ez download Club dues and membership fees. 1040nr ez download   You cannot deduct dues (including initiation fees) for membership in any club organized for: Business, Pleasure, Recreation, or Other social purpose. 1040nr ez download This rule applies to any membership organization if one of its principal purposes is either: To conduct entertainment activities for members or their guests, or To provide members or their guests with access to entertainment facilities, discussed later. 1040nr ez download   The purposes and activities of a club, not its name, will determine whether or not you can deduct the dues. 1040nr ez download You cannot deduct dues paid to: Country clubs, Golf and athletic clubs, Airline clubs, Hotel clubs, and Clubs operated to provide meals under circumstances generally considered to be conducive to business discussions. 1040nr ez download Entertainment facilities. 1040nr ez download   Generally, you cannot deduct any expense for the use of an entertainment facility. 1040nr ez download This includes expenses for depreciation and operating costs such as rent, utilities, maintenance, and protection. 1040nr ez download   An entertainment facility is any property you own, rent, or use for entertainment. 1040nr ez download Examples include a yacht, hunting lodge, fishing camp, swimming pool, tennis court, bowling alley, car, airplane, apartment, hotel suite, or home in a vacation resort. 1040nr ez download Out-of-pocket expenses. 1040nr ez download   You can deduct out-of-pocket expenses, such as for food and beverages, catering, gas, and fishing bait, that you provided during entertainment at a facility. 1040nr ez download These are not expenses for the use of an entertainment facility. 1040nr ez download However, these expenses are subject to the directly-related and associated tests and to the 50% limit , all discussed earlier. 1040nr ez download Expenses for spouses. 1040nr ez download   You generally cannot deduct the cost of entertainment for your spouse or for the spouse of a customer. 1040nr ez download However, you can deduct these costs if you can show you had a clear business purpose, rather than a personal or social purpose, for providing the entertainment. 1040nr ez download Example. 1040nr ez download You entertain a customer. 1040nr ez download The cost is an ordinary and necessary business expense and is allowed under the entertainment rules. 1040nr ez download The customer's spouse joins you because it is impractical to entertain the customer without the spouse. 1040nr ez download You can deduct the cost of entertaining the customer's spouse. 1040nr ez download If your spouse joins the party because the customer's spouse is present, the cost of the entertainment for your spouse is also deductible. 1040nr ez download Gift or entertainment. 1040nr ez download   Any item that might be considered either a gift or entertainment generally will be considered entertainment. 1040nr ez download However, if you give a customer packaged food or beverages that you intend the customer to use at a later date, treat it as a gift. 1040nr ez download   If you give a customer tickets to a theater performance or sporting event and you do not go with the customer to the performance or event, you have a choice. 1040nr ez download You can treat the tickets as either a gift or entertainment, whichever is to your advantage. 1040nr ez download   You can change your treatment of the tickets at a later date by filing an amended return. 1040nr ez download Generally, an amended return must be filed within 3 years from the date the original return was filed or within 2 years from the time the tax was paid, whichever is later. 1040nr ez download   If you go with the customer to the event, you must treat the cost of the tickets as an entertainment expense. 1040nr ez download You cannot choose, in this case, to treat the tickets as a gift. 1040nr ez download Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

Identity Protection

Español

The IRS is committed to working with taxpayers who are the victims of identity theft

The IRS has taken numerous steps to combat identity theft and protect taxpayers. We are continually looking at ways to increase data security and protect taxpayers' identities with assistance from our Identity Protection Specialized Unit. Identity theft cases are among the most complex ones we handle.

We know identity theft is a frustrating process for victims. We take this issue very seriously and continue to expand on our robust screening process in order to stop fraudulent returns and protect innocent taxpayers.

On this page, you will find a wide range of information. Depending upon your personal circumstances, the information found here will cover a variety of scenarios involving identity theft, ranging from contacting us with a case of identity theft to providing tips to help keep your records safe.

  • Victim of identity theft?

Do you have reason to believe you are the victim of identity theft and your tax accounts have been affected?

Have you been informed that someone may be using your Social Security number for employment purposes?

Remember:
The IRS does not initiate contact with taxpayers by email to request personal or financial information.  This includes any type of electronic communication, such as text messages and social media channels.

Page Last Reviewed or Updated: 13-Mar-2014

The 1040nr Ez Download

1040nr ez download 1. 1040nr ez download   Rental Income and Expenses (If No Personal Use of Dwelling) Table of Contents Rental IncomeWhen To Report Types of Income Rental ExpensesWhen To Deduct Types of Expenses This chapter discusses the various types of rental income and expenses for a residential rental activity with no personal use of the dwelling. 1040nr ez download Generally, each year you will report all income and deduct all out-of-pocket expenses in full. 1040nr ez download The deduction to recover the cost of your rental property—depreciation—is taken over a prescribed number of years, and is discussed in chapter 2, Depreciation of Rental Property. 1040nr ez download If your rental income is from property you also use personally or rent to someone at less than a fair rental price, first read the information in chapter 5 , Personal Use of Dwelling Unit (Including Vacation Home). 1040nr ez download Rental Income In most cases, you must include in your gross income all amounts you receive as rent. 1040nr ez download Rental income is any payment you receive for the use or occupation of property. 1040nr ez download In addition to amounts you receive as normal rental payments, there are other amounts that may be rental income. 1040nr ez download When To Report When you report rental income on your tax return generally depends on whether you are a cash basis taxpayer or use an accrual method. 1040nr ez download Most individual taxpayers use the cash method. 1040nr ez download Cash method. 1040nr ez download   You are a cash basis taxpayer if you report income on your return in the year you actually or constructively receive it, regardless of when it was earned. 1040nr ez download You constructively receive income when it is made available to you, for example, by being credited to your bank account. 1040nr ez download Accrual method. 1040nr ez download    If you are an accrual basis taxpayer, you generally report income when you earn it, rather than when you receive it. 1040nr ez download You generally deduct your expenses when you incur them, rather than when you pay them. 1040nr ez download More information. 1040nr ez download   See Publication 538, Accounting Periods and Methods, for more information about when you constructively receive income and accrual methods of accounting. 1040nr ez download Types of Income The following are common types of rental income. 1040nr ez download Advance rent. 1040nr ez download   Advance rent is any amount you receive before the period that it covers. 1040nr ez download Include advance rent in your rental income in the year you receive it regardless of the period covered or the method of accounting you use. 1040nr ez download Example. 1040nr ez download On March 18, 2013, you signed a 10-year lease to rent your property. 1040nr ez download During 2013, you received $9,600 for the first year's rent and $9,600 as rent for the last year of the lease. 1040nr ez download You must include $19,200 in your rental income in the first year. 1040nr ez download Canceling a lease. 1040nr ez download   If your tenant pays you to cancel a lease, the amount you receive is rent. 1040nr ez download Include the payment in your income in the year you receive it regardless of your method of accounting. 1040nr ez download Expenses paid by tenant. 1040nr ez download   If your tenant pays any of your expenses, those payments are rental income. 1040nr ez download Because you must include this amount in income, you can also deduct the expenses if they are deductible rental expenses. 1040nr ez download For more information, see Rental Expenses , later. 1040nr ez download Example 1. 1040nr ez download Your tenant pays the water and sewage bill for your rental property and deducts the amount from the normal rent payment. 1040nr ez download Under the terms of the lease, your tenant does not have to pay this bill. 1040nr ez download Include the utility bill paid by the tenant and any amount received as a rent payment in your rental income. 1040nr ez download You can deduct the utility payment made by your tenant as a rental expense. 1040nr ez download Example 2. 1040nr ez download While you are out of town, the furnace in your rental property stops working. 1040nr ez download Your tenant pays for the necessary repairs and deducts the repair bill from the rent payment. 1040nr ez download Include the repair bill paid by the tenant and any amount received as a rent payment in your rental income. 1040nr ez download You can deduct the repair payment made by your tenant as a rental expense. 1040nr ez download Property or services. 1040nr ez download   If you receive property or services as rent, instead of money, include the fair market value of the property or services in your rental income. 1040nr ez download   If the services are provided at an agreed upon or specified price, that price is the fair market value unless there is evidence to the contrary. 1040nr ez download Example. 1040nr ez download Your tenant is a house painter. 1040nr ez download He offers to paint your rental property instead of paying 2 months rent. 1040nr ez download You accept his offer. 1040nr ez download Include in your rental income the amount the tenant would have paid for 2 months rent. 1040nr ez download You can deduct that same amount as a rental expense for painting your property. 1040nr ez download Security deposits. 1040nr ez download   Do not include a security deposit in your income when you receive it if you plan to return it to your tenant at the end of the lease. 1040nr ez download But if you keep part or all of the security deposit during any year because your tenant does not live up to the terms of the lease, include the amount you keep in your income in that year. 1040nr ez download    If an amount called a security deposit is to be used as a final payment of rent, it is advance rent. 1040nr ez download Include it in your income when you receive it. 1040nr ez download Other Sources of Rental Income Lease with option to buy. 1040nr ez download   If the rental agreement gives your tenant the right to buy your rental property, the payments you receive under the agreement are generally rental income. 1040nr ez download If your tenant exercises the right to buy the property, the payments you receive for the period after the date of sale are considered part of the selling price. 1040nr ez download Part interest. 1040nr ez download   If you own a part interest in rental property, you must report your part of the rental income from the property. 1040nr ez download Rental of property also used as your home. 1040nr ez download   If you rent property that you also use as your home and you rent it less than 15 days during the tax year, do not include the rent you receive in your income and do not deduct rental expenses. 1040nr ez download However, you can deduct on Schedule A (Form 1040), Itemized Deductions, the interest, taxes, and casualty and theft losses that are allowed for nonrental property. 1040nr ez download See chapter 5, Personal Use of Dwelling Unit (Including Vacation Home). 1040nr ez download Rental Expenses In most cases, the expenses of renting your property, such as maintenance, insurance, taxes, and interest, can be deducted from your rental income. 1040nr ez download Personal use of rental property. 1040nr ez download   If you sometimes use your rental property for personal purposes, you must divide your expenses between rental and personal use. 1040nr ez download Also, your rental expense deductions may be limited. 1040nr ez download See chapter 5, Personal Use of Dwelling Unit (Including Vacation Home). 1040nr ez download Part interest. 1040nr ez download   If you own a part interest in rental property, you can deduct expenses you paid according to your percentage of ownership. 1040nr ez download Example. 1040nr ez download Roger owns a one-half undivided interest in a rental house. 1040nr ez download Last year he paid $968 for necessary repairs on the property. 1040nr ez download Roger can deduct $484 (50% × $968) as a rental expense. 1040nr ez download He is entitled to reimbursement for the remaining half from the co-owner. 1040nr ez download When To Deduct You generally deduct your rental expenses in the year you pay them. 1040nr ez download If you use the accrual method, see Publication 538 for more information. 1040nr ez download Types of Expenses Listed below are the most common rental expenses. 1040nr ez download Advertising. 1040nr ez download Auto and travel expenses. 1040nr ez download Cleaning and maintenance. 1040nr ez download Commissions. 1040nr ez download Depreciation. 1040nr ez download Insurance. 1040nr ez download Interest (other). 1040nr ez download Legal and other professional fees. 1040nr ez download Local transportation expenses. 1040nr ez download Management fees. 1040nr ez download Mortgage interest paid to banks, etc. 1040nr ez download Points. 1040nr ez download Rental payments. 1040nr ez download Repairs. 1040nr ez download Taxes. 1040nr ez download Utilities. 1040nr ez download Some of these expenses, as well as other less common ones, are discussed below. 1040nr ez download Depreciation. 1040nr ez download   Depreciation is a capital expense. 1040nr ez download It is the mechanism for recovering your cost in an income producing property and must be taken over the expected life of the property. 1040nr ez download   You can begin to depreciate rental property when it is ready and available for rent. 1040nr ez download See Placed in Service under When Does Depreciation Begin and End in chapter 2. 1040nr ez download Insurance premiums paid in advance. 1040nr ez download   If you pay an insurance premium for more than one year in advance, for each year of coverage you can deduct the part of the premium payment that will apply to that year. 1040nr ez download You cannot deduct the total premium in the year you pay it. 1040nr ez download See chapter 6 of Publication 535 for information on deductible premiums. 1040nr ez download Interest expense. 1040nr ez download   You can deduct mortgage interest you pay on your rental property. 1040nr ez download When you refinance a rental property for more than the previous outstanding balance, the portion of the interest allocable to loan proceeds not related to rental use generally cannot be deducted as a rental expense. 1040nr ez download Chapter 4 of Publication 535 explains mortgage interest in detail. 1040nr ez download Expenses paid to obtain a mortgage. 1040nr ez download   Certain expenses you pay to obtain a mortgage on your rental property cannot be deducted as interest. 1040nr ez download These expenses, which include mortgage commissions, abstract fees, and recording fees, are capital expenses that are part of your basis in the property. 1040nr ez download Form 1098, Mortgage Interest Statement. 1040nr ez download   If you paid $600 or more of mortgage interest on your rental property to any one person, you should receive a Form 1098 or similar statement showing the interest you paid for the year. 1040nr ez download If you and at least one other person (other than your spouse if you file a joint return) were liable for, and paid interest on, the mortgage, and the other person received the Form 1098, report your share of the interest on Schedule E (Form 1040), line 13. 1040nr ez download Attach a statement to your return showing the name and address of the other person. 1040nr ez download On the dotted line next to line 13, enter “See attached. 1040nr ez download ” Legal and other professional fees. 1040nr ez download   You can deduct, as a rental expense, legal and other professional expenses such as tax return preparation fees you paid to prepare Schedule E, Part I. 1040nr ez download For example, on your 2013 Schedule E you can deduct fees paid in 2013 to prepare Part I of your 2012 Schedule E. 1040nr ez download You can also deduct, as a rental expense, any expense (other than federal taxes and penalties) you paid to resolve a tax underpayment related to your rental activities. 1040nr ez download Local benefit taxes. 1040nr ez download   In most cases, you cannot deduct charges for local benefits that increase the value of your property, such as charges for putting in streets, sidewalks, or water and sewer systems. 1040nr ez download These charges are nondepreciable capital expenditures and must be added to the basis of your property. 1040nr ez download However, you can deduct local benefit taxes that are for maintaining, repairing, or paying interest charges for the benefits. 1040nr ez download Local transportation expenses. 1040nr ez download   You may be able to deduct your ordinary and necessary local transportation expenses if you incur them to collect rental income or to manage, conserve, or maintain your rental property. 1040nr ez download However, transportation expenses incurred to travel between your home and a rental property generally constitute nondeductible commuting costs unless you use your home as your principal place of business. 1040nr ez download See Publication 587, Business Use of Your Home, for information on determining if your home office qualifies as a principal place of business. 1040nr ez download   Generally, if you use your personal car, pickup truck, or light van for rental activities, you can deduct the expenses using one of two methods: actual expenses or the standard mileage rate. 1040nr ez download For 2013, the standard mileage rate for business use is 56. 1040nr ez download 5 cents per mile. 1040nr ez download For more information, see chapter 4 of Publication 463. 1040nr ez download    To deduct car expenses under either method, you must keep records that follow the rules in chapter 5 of Publication 463. 1040nr ez download In addition, you must complete Form 4562, Part V, and attach it to your tax return. 1040nr ez download Pre-rental expenses. 1040nr ez download   You can deduct your ordinary and necessary expenses for managing, conserving, or maintaining rental property from the time you make it available for rent. 1040nr ez download Rental of equipment. 1040nr ez download   You can deduct the rent you pay for equipment that you use for rental purposes. 1040nr ez download However, in some cases, lease contracts are actually purchase contracts. 1040nr ez download If so, you cannot deduct these payments. 1040nr ez download You can recover the cost of purchased equipment through depreciation. 1040nr ez download Rental of property. 1040nr ez download   You can deduct the rent you pay for property that you use for rental purposes. 1040nr ez download If you buy a leasehold for rental purposes, you can deduct an equal part of the cost each year over the term of the lease. 1040nr ez download Travel expenses. 1040nr ez download   You can deduct the ordinary and necessary expenses of traveling away from home if the primary purpose of the trip is to collect rental income or to manage, conserve, or maintain your rental property. 1040nr ez download You must properly allocate your expenses between rental and nonrental activities. 1040nr ez download You cannot deduct the cost of traveling away from home if the primary purpose of the trip is to improve the property. 1040nr ez download The cost of improvements is recovered by taking depreciation. 1040nr ez download For information on travel expenses, see chapter 1 of Publication 463. 1040nr ez download    To deduct travel expenses, you must keep records that follow the rules in chapter 5 of Publication 463. 1040nr ez download Uncollected rent. 1040nr ez download   If you are a cash basis taxpayer, do not deduct uncollected rent. 1040nr ez download Because you have not included it in your income, it is not deductible. 1040nr ez download   If you use an accrual method, report income when you earn it. 1040nr ez download If you are unable to collect the rent, you may be able to deduct it as a business bad debt. 1040nr ez download See chapter 10 of Publication 535 for more information about business bad debts. 1040nr ez download Vacant rental property. 1040nr ez download   If you hold property for rental purposes, you may be able to deduct your ordinary and necessary expenses (including depreciation) for managing, conserving, or maintaining the property while the property is vacant. 1040nr ez download However, you cannot deduct any loss of rental income for the period the property is vacant. 1040nr ez download Vacant while listed for sale. 1040nr ez download   If you sell property you held for rental purposes, you can deduct the ordinary and necessary expenses for managing, conserving, or maintaining the property until it is sold. 1040nr ez download If the property is not held out and available for rent while listed for sale, the expenses are not deductible rental expenses. 1040nr ez download Points The term “points” is often used to describe some of the charges paid, or treated as paid, by a borrower to take out a loan or a mortgage. 1040nr ez download These charges are also called loan origination fees, maximum loan charges, or premium charges. 1040nr ez download Any of these charges (points) that are solely for the use of money are interest. 1040nr ez download Because points are prepaid interest, you generally cannot deduct the full amount in the year paid, but must deduct the interest over the term of the loan. 1040nr ez download The method used to figure the amount of points you can deduct each year follows the original issue discount (OID) rules. 1040nr ez download In this case, points are equivalent to OID, which is the difference between: The amount borrowed (redemption price at maturity, or principal) and The proceeds (issue price). 1040nr ez download The first step is to determine whether your total OID (which you may have on bonds or other investments in addition to the mortgage loan), including the OID resulting from the points, is insignificant or de minimis. 1040nr ez download If the OID is not de minimis, you must use the constant-yield method to figure how much you can deduct. 1040nr ez download De minimis OID. 1040nr ez download   The OID is de minimis if it is less than one-fourth of 1% (. 1040nr ez download 0025) of the stated redemption price at maturity (principal amount of the loan) multiplied by the number of full years from the date of original issue to maturity (term of the loan). 1040nr ez download   If the OID is de minimis, you can choose one of the following ways to figure the amount of points you can deduct each year. 1040nr ez download On a constant-yield basis over the term of the loan. 1040nr ez download On a straight line basis over the term of the loan. 1040nr ez download In proportion to stated interest payments. 1040nr ez download In its entirety at maturity of the loan. 1040nr ez download You make this choice by deducting the OID (points) in a manner consistent with the method chosen on your timely filed tax return for the tax year in which the loan is issued. 1040nr ez download Example. 1040nr ez download Carol Madison took out a $100,000 mortgage loan on January 1, 2013, to buy a house she will use as a rental during 2013. 1040nr ez download The loan is to be repaid over 30 years. 1040nr ez download During 2013, Carol paid $10,000 of mortgage interest (stated interest) to the lender. 1040nr ez download When the loan was made, she paid $1,500 in points to the lender. 1040nr ez download The points reduced the principal amount of the loan from $100,000 to $98,500, resulting in $1,500 of OID. 1040nr ez download Carol determines that the points (OID) she paid are de minimis based on the following computation. 1040nr ez download Redemption price at maturity (principal amount of the loan) $100,000 Multiplied by: The term of the  loan in complete years ×30 Multiplied by ×. 1040nr ez download 0025 De minimis amount $7,500 The points (OID) she paid ($1,500) are less than the de minimis amount ($7,500). 1040nr ez download Therefore, Carol has de minimis OID and she can choose one of the four ways discussed earlier to figure the amount she can deduct each year. 1040nr ez download Under the straight line method, she can deduct $50 each year for 30 years. 1040nr ez download Constant-yield method. 1040nr ez download   If the OID is not de minimis, you must use the constant-yield method to figure how much you can deduct each year. 1040nr ez download   You figure your deduction for the first year in the following manner. 1040nr ez download Determine the issue price of the loan. 1040nr ez download If you paid points on the loan, the issue price generally is the difference between the principal and the points. 1040nr ez download Multiply the result in (1) by the yield to maturity (defined later). 1040nr ez download Subtract any qualified stated interest payments (defined later) from the result in (2). 1040nr ez download This is the OID you can deduct in the first year. 1040nr ez download Yield to maturity (YTM). 1040nr ez download   This rate is generally shown in the literature you receive from your lender. 1040nr ez download If you do not have this information, consult your lender or tax advisor. 1040nr ez download In general, the YTM is the discount rate that, when used in computing the present value of all principal and interest payments, produces an amount equal to the principal amount of the loan. 1040nr ez download Qualified stated interest (QSI). 1040nr ez download   In general, this is the stated interest that is unconditionally payable in cash or property (other than another loan of the issuer) at least annually over the term of the loan at a fixed rate. 1040nr ez download Example—Year 1. 1040nr ez download The facts are the same as in the previous example. 1040nr ez download The yield to maturity on Carol's loan is 10. 1040nr ez download 2467%, compounded annually. 1040nr ez download She figured the amount of points (OID) she could deduct in 2013 as follows. 1040nr ez download Principal amount of the loan $100,000 Minus: Points (OID) –1,500 Issue price of the loan $98,500 Multiplied by: YTM × . 1040nr ez download 102467 Total 10,093 Minus: QSI –10,000 Points (OID) deductible in 2013 $93 To figure your deduction in any subsequent year, you start with the adjusted issue price. 1040nr ez download To get the adjusted issue price, add to the issue price figured in Year 1 any OID previously deducted. 1040nr ez download Then follow steps (2) and (3), earlier. 1040nr ez download Example—Year 2. 1040nr ez download Carol figured the deduction for 2014 as follows. 1040nr ez download Issue price $98,500 Plus: Points (OID) deducted  in 2013 +93 Adjusted issue price $98,593 Multiplied by: YTM × . 1040nr ez download 102467 Total 10,103 Minus: QSI –10,000 Points (OID) deductible in 2014 $103 Loan or mortgage ends. 1040nr ez download    If your loan or mortgage ends, you may be able to deduct any remaining points (OID) in the tax year in which the loan or mortgage ends. 1040nr ez download A loan or mortgage may end due to a refinancing, prepayment, foreclosure, or similar event. 1040nr ez download However, if the refinancing is with the same lender, the remaining points (OID) generally are not deductible in the year in which the refinancing occurs, but may be deductible over the term of the new mortgage or loan. 1040nr ez download Points when loan refinance is more than the previous outstanding balance. 1040nr ez download   When you refinance a rental property for more than the previous outstanding balance, the portion of the points allocable to loan proceeds not related to rental use generally cannot be deducted as a rental expense. 1040nr ez download For example, if an individual refinanced a loan with a balance of $100,000, the amount of the new loan was $120,000, and the taxpayer used $20,000 to purchase a car, points allocable to the $20,000 would be treated as nondeductible personal interest. 1040nr ez download Repairs and Improvements Generally, an expense for repairing or maintaining your rental property may be deducted if you are not required to capitalize the expense. 1040nr ez download Improvements. 1040nr ez download   You must capitalize any expense you pay to improve your rental property. 1040nr ez download An expense is for an improvement if it results in a betterment to your property, restores your property, or adapts your property to a new or different use. 1040nr ez download Betterments. 1040nr ez download   Expenses that may result in a betterment to your property include expenses for fixing a pre-existing defect or condition, enlarging or expanding your property, or increasing the capacity, strength, or quality of your property. 1040nr ez download Restoration. 1040nr ez download   Expenses that may be for restoration include expenses for replacing a substantial structural part of your property, repairing damage to your property after you properly adjusted the basis of your property as a result of a casualty loss, or rebuilding your property to a like-new condition. 1040nr ez download Adaptation. 1040nr ez download   Expenses that may be for adaptation include expenses for altering your property to a use that is not consistent with the intended ordinary use of your property when you began renting the property. 1040nr ez download Separate the costs of repairs and improvements, and keep accurate records. 1040nr ez download You will need to know the cost of improvements when you sell or depreciate your property. 1040nr ez download The expenses you capitalize for improving your property can generally be depreciated as if the improvement were separate property. 1040nr ez download Table 1-1. 1040nr ez download Examples of Improvements Additions Bedroom Bathroom Deck Garage Porch Patio  Lawn & Grounds Landscaping Driveway Walkway Fence Retaining wall Sprinkler system Swimming pool Miscellaneous Storm windows, doors New roof Central vacuum Wiring upgrades Satellite dish Security system   Heating & Air Conditioning Heating system Central air conditioning Furnace Duct work Central humidifier Filtration system Plumbing Septic system Water heater Soft water system Filtration system  Interior Improvements Built-in appliances Kitchen modernization Flooring Wall-to-wall carpeting  Insulation Attic Walls, floor Pipes, duct work Prev  Up  Next   Home   More Online Publications