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Filing Back Tax Returns

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Filing Back Tax Returns

Filing back tax returns 9. Filing back tax returns   Rental Income and Expenses Table of Contents Introduction Useful Items - You may want to see: Rental Income Rental ExpensesVacant while listed for sale. Filing back tax returns Repairs and Improvements Other Expenses Property Changed to Rental Use Renting Part of Property Not Rented for Profit Personal Use of Dwelling Unit (Including Vacation Home)Example. Filing back tax returns Dividing Expenses Dwelling Unit Used as a Home Reporting Income and Deductions DepreciationChanging your accounting method to deduct unclaimed depreciation. Filing back tax returns Limits on Rental LossesAt-Risk Rules Passive Activity Limits How To Report Rental Income and ExpensesSchedule E (Form 1040) Introduction This chapter discusses rental income and expenses. Filing back tax returns It also covers the following topics. Filing back tax returns Personal use of dwelling unit (including vacation home). Filing back tax returns Depreciation. Filing back tax returns Limits on rental losses. Filing back tax returns How to report your rental income and expenses. Filing back tax returns If you sell or otherwise dispose of your rental property, see Publication 544, Sales and Other Dispositions of Assets. Filing back tax returns If you have a loss from damage to, or theft of, rental property, see Publication 547, Casualties, Disasters, and Thefts. Filing back tax returns If you rent a condominium or a cooperative apartment, some special rules apply to you even though you receive the same tax treatment as other owners of rental property. Filing back tax returns See Publication 527, Residential Rental Property, for more information. Filing back tax returns Useful Items - You may want to see: Publication 527 Residential Rental Property 534 Depreciating Property Placed in Service Before 1987 535 Business Expenses 925 Passive Activity and At-Risk Rules 946 How To Depreciate Property Form (and Instructions) 4562 Depreciation and Amortization 6251 Alternative Minimum Tax—Individuals 8582 Passive Activity Loss Limitations Schedule E (Form 1040) Supplemental Income and Loss Rental Income In most cases, you must include in your gross income all amounts you receive as rent. Filing back tax returns Rental income is any payment you receive for the use or occupation of property. Filing back tax returns In addition to amounts you receive as normal rent payments, there are other amounts that may be rental income. Filing back tax returns When to report. Filing back tax returns   If you are a cash-basis taxpayer, you report rental income on your return for the year you actually or constructively receive it. Filing back tax returns You are a cash-basis taxpayer if you report income in the year you receive it, regardless of when it was earned. Filing back tax returns You constructively receive income when it is made available to you, for example, by being credited to your bank account. Filing back tax returns   For more information about when you constructively receive income, see Accounting Methods in chapter 1. Filing back tax returns Advance rent. Filing back tax returns   Advance rent is any amount you receive before the period that it covers. Filing back tax returns 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. Filing back tax returns Example. Filing back tax returns You sign a 10-year lease to rent your property. Filing back tax returns In the first year, you receive $5,000 for the first year's rent and $5,000 as rent for the last year of the lease. Filing back tax returns You must include $10,000 in your income in the first year. Filing back tax returns Canceling a lease. Filing back tax returns   If your tenant pays you to cancel a lease, the amount you receive is rent. Filing back tax returns Include the payment in your income in the year you receive it regardless of your method of accounting. Filing back tax returns Expenses paid by tenant. Filing back tax returns   If your tenant pays any of your expenses, the payments are rental income. Filing back tax returns Because you must include this amount in income, you can deduct the expenses if they are deductible rental expenses. Filing back tax returns See Rental Expenses , later, for more information. Filing back tax returns Property or services. Filing back tax returns   If you receive property or services, instead of money, as rent, include the fair market value of the property or services in your rental income. Filing back tax returns   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. Filing back tax returns Security deposits. Filing back tax returns   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. Filing back tax returns 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. Filing back tax returns   If an amount called a security deposit is to be used as a final payment of rent, it is advance rent. Filing back tax returns Include it in your income when you receive it. Filing back tax returns Part interest. Filing back tax returns   If you own a part interest in rental property, you must report your part of the rental income from the property. Filing back tax returns Rental of property also used as your home. Filing back tax returns   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. Filing back tax returns However, you can deduct on Schedule A (Form 1040) the interest, taxes, and casualty and theft losses that are allowed for nonrental property. Filing back tax returns See Personal Use of Dwelling Unit (Including Vacation Home) , later. Filing back tax returns Rental Expenses This part discusses expenses of renting property that you ordinarily can deduct from your rental income. Filing back tax returns It includes information on the expenses you can deduct if you rent part of your property, or if you change your property to rental use. Filing back tax returns Depreciation , which you can also deduct from your rental income, is discussed later. Filing back tax returns Personal use of rental property. Filing back tax returns   If you sometimes use your rental property for personal purposes, you must divide your expenses between rental and personal use. Filing back tax returns Also, your rental expense deductions may be limited. Filing back tax returns See Personal Use of Dwelling Unit (Including Vacation Home) , later. Filing back tax returns Part interest. Filing back tax returns   If you own a part interest in rental property, you can deduct expenses that you paid according to your percentage of ownership. Filing back tax returns When to deduct. Filing back tax returns   If you are a cash-basis taxpayer, you generally deduct your rental expenses in the year you pay them. Filing back tax returns Depreciation. Filing back tax returns   You can begin to depreciate rental property when it is ready and available for rent. Filing back tax returns See Placed-in-Service under When Does Depreciation Begin and End in chapter 2 of Publication 527. Filing back tax returns Pre-rental expenses. Filing back tax returns   You can deduct your ordinary and necessary expenses for managing, conserving, or maintaining rental property from the time you make it available for rent. Filing back tax returns Uncollected rent. Filing back tax returns   If you are a cash-basis taxpayer, do not deduct uncollected rent. Filing back tax returns Because you have not included it in your income, it is not deductible. Filing back tax returns Vacant rental property. Filing back tax returns   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. Filing back tax returns However, you cannot deduct any loss of rental income for the period the property is vacant. Filing back tax returns Vacant while listed for sale. Filing back tax returns   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. Filing back tax returns If the property is not held out and available for rent while listed for sale, the expenses are not deductible rental expenses. Filing back tax returns 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. Filing back tax returns Improvements. Filing back tax returns   You must capitalize any expense you pay to improve your rental property. Filing back tax returns 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. Filing back tax returns Betterments. Filing back tax returns   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. Filing back tax returns Restoration. Filing back tax returns   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. Filing back tax returns Adaptation. Filing back tax returns   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. Filing back tax returns Separate the costs of repairs and improvements, and keep accurate records. Filing back tax returns You will need to know the cost of improvements when you sell or depreciate your property. Filing back tax returns The expenses you capitalize for improving your property can generally be depreciated as if the improvement were separate property. Filing back tax returns Other Expenses Other expenses you can deduct from your rental income include advertising, cleaning and maintenance, utilities, fire and liability insurance, taxes, interest, commissions for the collection of rent, ordinary and necessary travel and transportation, and other expenses, discussed next. Filing back tax returns Insurance premiums paid in advance. Filing back tax returns   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. Filing back tax returns You cannot deduct the total premium in the year you pay it. Filing back tax returns Legal and other professional fees. Filing back tax returns   You can deduct, as a rental expense, legal and other professional expenses, such as tax return preparation fees you paid to prepare Schedule E (Form 1040), Part I. Filing back tax returns For example, on your 2013 Schedule E, you can deduct fees paid in 2013 to prepare your 2012 Schedule E, Part I. Filing back tax returns 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. Filing back tax returns Local benefit taxes. Filing back tax returns   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. Filing back tax returns These charges are nondepreciable capital expenditures, and must be added to the basis of your property. Filing back tax returns However, you can deduct local benefit taxes that are for maintaining, repairing, or paying interest charges for the benefits. Filing back tax returns Local transportation expenses. Filing back tax returns    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. Filing back tax returns 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. Filing back tax returns See Publication 587, Business Use of Your Home, for information on determining if your home office qualifies as a principal place of business. Filing back tax returns   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. Filing back tax returns For 2013, the standard mileage rate for business use is 56. Filing back tax returns 5 cents per mile. Filing back tax returns For more information, see chapter 26. Filing back tax returns    To deduct car expenses under either method, you must keep records that follow the rules in chapter 26. Filing back tax returns In addition, you must complete Form 4562, Part V, and attach it to your tax return. Filing back tax returns Rental of equipment. Filing back tax returns   You can deduct the rent you pay for equipment that you use for rental purposes. Filing back tax returns However, in some cases, lease contracts are actually purchase contracts. Filing back tax returns If so, you cannot deduct these payments. Filing back tax returns You can recover the cost of purchased equipment through depreciation. Filing back tax returns Rental of property. Filing back tax returns   You can deduct the rent you pay for property that you use for rental purposes. Filing back tax returns 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. Filing back tax returns Travel expenses. Filing back tax returns   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. Filing back tax returns You must properly allocate your expenses between rental and nonrental activities. Filing back tax returns You cannot deduct the cost of traveling away from home if the primary purpose of the trip was to improve your property. Filing back tax returns You recover the cost of improvements by taking depreciation. Filing back tax returns For information on travel expenses, see chapter 26. Filing back tax returns    To deduct travel expenses, you must keep records that follow the rules in chapter 26. Filing back tax returns   See Rental Expenses in Publication 527 for more information. Filing back tax returns Property Changed to Rental Use If you change your home or other property (or a part of it) to rental use at any time other than the beginning of your tax year, you must divide yearly expenses, such as taxes and insurance, between rental use and personal use. Filing back tax returns You can deduct as rental expenses only the part of the expense that is for the part of the year the property was used or held for rental purposes. Filing back tax returns You cannot deduct depreciation or insurance for the part of the year the property was held for personal use. Filing back tax returns However, you can include the home mortgage interest, qualified mortgage insurance premiums, and real estate tax expenses for the part of the year the property was held for personal use as an itemized deduction on Schedule A (Form 1040). Filing back tax returns Example. Filing back tax returns Your tax year is the calendar year. Filing back tax returns You moved from your home in May and started renting it out on June 1. Filing back tax returns You can deduct as rental expenses seven-twelfths of your yearly expenses, such as taxes and insurance. Filing back tax returns Starting with June, you can deduct as rental expenses the amounts you pay for items generally billed monthly, such as utilities. Filing back tax returns Renting Part of Property If you rent part of your property, you must divide certain expenses between the part of the property used for rental purposes and the part of the property used for personal purposes, as though you actually had two separate pieces of property. Filing back tax returns You can deduct the expenses related to the part of the property used for rental purposes, such as home mortgage interest, qualified mortgage insurance premiums, and real estate taxes, as rental expenses on Schedule E (Form 1040). Filing back tax returns You can also deduct as rental expenses a portion of other expenses that normally are nondeductible personal expenses, such as expenses for electricity or painting the outside of your house. Filing back tax returns There is no change in the types of expenses deductible for the personal-use part of your property. Filing back tax returns Generally, these expenses may be deducted only if you itemize your deductions on Schedule A (Form 1040). Filing back tax returns You cannot deduct any part of the cost of the first phone line even if your tenants have unlimited use of it. Filing back tax returns You do not have to divide the expenses that belong only to the rental part of your property. Filing back tax returns For example, if you paint a room that you rent, or if you pay premiums for liability insurance in connection with renting a room in your home, your entire cost is a rental expense. Filing back tax returns If you install a second phone line strictly for your tenants' use, all of the cost of the second line is deductible as a rental expense. Filing back tax returns You can deduct depreciation, discussed later, on the part of the house used for rental purposes as well as on the furniture and equipment you use for rental purposes. Filing back tax returns How to divide expenses. Filing back tax returns   If an expense is for both rental use and personal use, such as mortgage interest or heat for the entire house, you must divide the expense between the rental use and the personal use. Filing back tax returns You can use any reasonable method for dividing the expense. Filing back tax returns It may be reasonable to divide the cost of some items (for example, water) based on the number of people using them. Filing back tax returns The two most common methods for dividing an expense are based on (1) the number of rooms in your home, and (2) the square footage of your home. Filing back tax returns Not Rented for Profit If you do not rent your property to make a profit, you can deduct your rental expenses only up to the amount of your rental income. Filing back tax returns You cannot deduct a loss or carry forward to the next year any rental expenses that are more than your rental income for the year. Filing back tax returns For more information about the rules for an activity not engaged in for profit, see Not-for-Profit Activities in chapter 1 of Publication 535. Filing back tax returns Where to report. Filing back tax returns   Report your not-for-profit rental income on Form 1040, line 21. Filing back tax returns For example, you can include your mortgage interest and any qualified mortgage insurance premiums (if you use the property as your main home or second home), real estate taxes, and casualty losses on the appropriate lines of Schedule A (Form 1040) if you itemize your deductions. Filing back tax returns   If you itemize your deductions, claim your other rental expenses, subject to the rules explained in chapter 1 of Publication 535, as miscellaneous itemized deductions on Form 1040, Schedule A, line 23. Filing back tax returns You can deduct these expenses only if they, together with certain other miscellaneous itemized deductions, total more than 2% of your adjusted gross income. Filing back tax returns Personal Use of Dwelling Unit (Including Vacation Home) If you have any personal use of a dwelling unit (including a vacation home) that you rent, you must divide your expenses between rental use and personal use. Filing back tax returns In general, your rental expenses will be no more than your total expenses multiplied by a fraction; the denominator of which is the total number of days the dwelling unit is used and the numerator of which is the total number of days actually rented at a fair rental price. Filing back tax returns Only your rental expenses may be deducted on Schedule E (Form 1040). Filing back tax returns Some of your personal expenses may be deductible if you itemize your deductions on Schedule A (Form 1040). Filing back tax returns You must also determine if the dwelling unit is considered a home. Filing back tax returns The amount of rental expenses that you can deduct may be limited if the dwelling unit is considered a home. Filing back tax returns Whether a dwelling unit is considered a home depends on how many days during the year are considered to be days of personal use. Filing back tax returns There is a special rule if you used the dwelling unit as a home and you rented it for less than 15 days during the year. Filing back tax returns Dwelling unit. Filing back tax returns   A dwelling unit includes a house, apartment, condominium, mobile home, boat, vacation home, or similar property. Filing back tax returns It also includes all structures or other property belonging to the dwelling unit. Filing back tax returns A dwelling unit has basic living accommodations, such as sleeping space, a toilet, and cooking facilities. Filing back tax returns   A dwelling unit does not include property used solely as a hotel, motel, inn, or similar establishment. Filing back tax returns Property is used solely as a hotel, motel, inn, or similar establishment if it is regularly available for occupancy by paying customers and is not used by an owner as a home during the year. Filing back tax returns Example. Filing back tax returns   You rent a room in your home that is always available for short-term occupancy by paying customers. Filing back tax returns You do not use the room yourself, and you allow only paying customers to use the room. Filing back tax returns The room is used solely as a hotel, motel, inn, or similar establishment and is not a dwelling unit. Filing back tax returns Dividing Expenses If you use a dwelling unit for both rental and personal purposes, divide your expenses between the rental use and the personal use based on the number of days used for each purpose. Filing back tax returns When dividing your expenses, follow these rules. Filing back tax returns Any day that the unit is rented at a fair rental price is a day of rental use even if you used the unit for personal purposes that day. Filing back tax returns This rule does not apply when determining whether you used the unit as a home. Filing back tax returns Any day that the unit is available for rent but not actually rented is not a day of rental use. Filing back tax returns Example. Filing back tax returns Your beach cottage was available for rent from June 1 through August 31 (92 days). Filing back tax returns During that time, except for the first week in August (7 days) when you were unable to find a renter, you rented the cottage at a fair rental price. Filing back tax returns The person who rented the cottage for July allowed you to use it over the weekend (2 days) without any reduction in or refund of rent. Filing back tax returns Your family also used the cottage during the last 2 weeks of May (14 days). Filing back tax returns The cottage was not used at all before May 17 or after August 31. Filing back tax returns You figure the part of the cottage expenses to treat as rental expenses as follows. Filing back tax returns The cottage was used for rental a total of 85 days (92 − 7). Filing back tax returns The days it was available for rent but not rented (7 days) are not days of rental use. Filing back tax returns The July weekend (2 days) you used it is rental use because you received a fair rental price for the weekend. Filing back tax returns You used the cottage for personal purposes for 14 days (the last 2 weeks in May). Filing back tax returns The total use of the cottage was 99 days (14 days personal use + 85 days rental use). Filing back tax returns Your rental expenses are 85/99 (86%) of the cottage expenses. Filing back tax returns Note. Filing back tax returns When determining whether you used the cottage as a home, the July weekend (2 days) you used it is considered personal use even though you received a fair rental price for the weekend. Filing back tax returns Therefore, you had 16 days of personal use and 83 days of rental use for this purpose. Filing back tax returns Because you used the cottage for personal purposes more than 14 days and more than 10% of the days of rental use (8 days), you used it as a home. Filing back tax returns If you have a net loss, you may not be able to deduct all of the rental expenses. Filing back tax returns See Dwelling Unit Used as a Home, next. Filing back tax returns Dwelling Unit Used as a Home If you use a dwelling unit for both rental and personal purposes, the tax treatment of the rental expenses you figured earlier under Dividing Expenses and rental income depends on whether you are considered to be using the dwelling unit as a home. Filing back tax returns You use a dwelling unit as a home during the tax year if you use it for personal purposes more than the greater of: 14 days, or 10% of the total days it is rented to others at a fair rental price. Filing back tax returns See What is a day of personal use , later. Filing back tax returns Fair rental price. Filing back tax returns   A fair rental price for your property generally is the amount of rent that a person who is not related to you would be willing to pay. Filing back tax returns The rent you charge is not a fair rental price if it is substantially less than the rents charged for other properties that are similar to your property in your area. Filing back tax returns   If a dwelling unit is used for personal purposes on a day it is rented at a fair rental price, do not count that day as a day of rental use in applying (2) above. Filing back tax returns Instead, count it as a day of personal use in applying both (1) and (2) above. Filing back tax returns What is a day of personal use?   A day of personal use of a dwelling unit is any day that the unit is used by any of the following persons. Filing back tax returns You or any other person who has an interest in the unit, unless you rent it to another owner as his or her main home under a shared equity financing agreement (defined later). Filing back tax returns However, see Days used as a main home before or after renting , later. Filing back tax returns A member of your family or a member of the family of any other person who owns an interest in the unit, unless the family member uses the dwelling unit as his or her main home and pays a fair rental price. Filing back tax returns Family includes only your spouse, brothers and sisters, half-brothers and half-sisters, ancestors (parents, grandparents, etc. Filing back tax returns ), and lineal descendants (children, grandchildren, etc. Filing back tax returns ). Filing back tax returns Anyone under an arrangement that lets you use some other dwelling unit. Filing back tax returns Anyone at less than a fair rental price. Filing back tax returns Main home. Filing back tax returns   If the other person or member of the family in (1) or (2) above has more than one home, his or her main home is ordinarily the one he or she lived in most of the time. Filing back tax returns Shared equity financing agreement. Filing back tax returns   This is an agreement under which two or more persons acquire undivided interests for more than 50 years in an entire dwelling unit, including the land, and one or more of the co-owners is entitled to occupy the unit as his or her main home upon payment of rent to the other co-owner or owners. Filing back tax returns Donation of use of property. Filing back tax returns   You use a dwelling unit for personal purposes if: You donate the use of the unit to a charitable organization, The organization sells the use of the unit at a fund-raising event, and The “purchaser” uses the unit. Filing back tax returns Examples. Filing back tax returns   The following examples show how to determine days of personal use. Filing back tax returns Example 1. Filing back tax returns You and your neighbor are co-owners of a condominium at the beach. Filing back tax returns Last year, you rented the unit to vacationers whenever possible. Filing back tax returns The unit was not used as a main home by anyone. Filing back tax returns Your neighbor used the unit for 2 weeks last year; you did not use it at all. Filing back tax returns Because your neighbor has an interest in the unit, both of you are considered to have used the unit for personal purposes during those 2 weeks. Filing back tax returns Example 2. Filing back tax returns You and your neighbors are co-owners of a house under a shared equity financing agreement. Filing back tax returns Your neighbors live in the house and pay you a fair rental price. Filing back tax returns Even though your neighbors have an interest in the house, the days your neighbors live there are not counted as days of personal use by you. Filing back tax returns This is because your neighbors rent the house as their main home under a shared equity financing agreement. Filing back tax returns Example 3. Filing back tax returns You own a rental property that you rent to your son. Filing back tax returns Your son does not own any interest in this property. Filing back tax returns He uses it as his main home and pays you a fair rental price. Filing back tax returns Your son's use of the property is not personal use by you because your son is using it as his main home, he owns no interest in the property, and he is paying you a fair rental price. Filing back tax returns Example 4. Filing back tax returns You rent your beach house to Joshua. Filing back tax returns Joshua rents his cabin in the mountains to you. Filing back tax returns You each pay a fair rental price. Filing back tax returns You are using your house for personal purposes on the days that Joshua uses it because your house is used by Joshua under an arrangement that allows you to use his house. Filing back tax returns Days used for repairs and maintenance. Filing back tax returns   Any day that you spend working substantially full time repairing and maintaining (not improving) your property is not counted as a day of personal use. Filing back tax returns Do not count such a day as a day of personal use even if family members use the property for recreational purposes on the same day. Filing back tax returns Days used as a main home before or after renting. Filing back tax returns   For purposes of determining whether a dwelling unit was used as a home, you may not have to count days you used the property as your main home before or after renting it or offering it for rent as days of personal use. Filing back tax returns Do not count them as days of personal use if: You rented or tried to rent the property for 12 or more consecutive months. Filing back tax returns You rented or tried to rent the property for a period of less than 12 consecutive months and the period ended because you sold or exchanged the property. Filing back tax returns However, this special rule does not apply when dividing expenses between rental and personal use. Filing back tax returns Examples. Filing back tax returns   The following examples show how to determine whether you used your rental property as a home. Filing back tax returns Example 1. Filing back tax returns You converted the basement of your home into an apartment with a bedroom, a bathroom, and a small kitchen. Filing back tax returns You rented the basement apartment at a fair rental price to college students during the regular school year. Filing back tax returns You rented to them on a 9-month lease (273 days). Filing back tax returns You figured 10% of the total days rented to others at a fair rental price is 27 days. Filing back tax returns During June (30 days), your brothers stayed with you and lived in the basement apartment rent free. Filing back tax returns Your basement apartment was used as a home because you used it for personal purposes for 30 days. Filing back tax returns Rent-free use by your brothers is considered personal use. Filing back tax returns Your personal use (30 days) is more than the greater of 14 days or 10% of the total days it was rented (27 days). Filing back tax returns Example 2. Filing back tax returns You rented the guest bedroom in your home at a fair rental price during the local college's homecoming, commencement, and football weekends (a total of 27 days). Filing back tax returns Your sister-in-law stayed in the room, rent free, for the last 3 weeks (21 days) in July. Filing back tax returns You figured 10% of the total days rented to others at a fair rental price is 3 days. Filing back tax returns The room was used as a home because you used it for personal purposes for 21 days. Filing back tax returns That is more than the greater of 14 days or 10% of the 27 days it was rented (3 days). Filing back tax returns Example 3. Filing back tax returns You own a condominium apartment in a resort area. Filing back tax returns You rented it at a fair rental price for a total of 170 days during the year. Filing back tax returns For 12 of those days, the tenant was not able to use the apartment and allowed you to use it even though you did not refund any of the rent. Filing back tax returns Your family actually used the apartment for 10 of those days. Filing back tax returns Therefore, the apartment is treated as having been rented for 160 (170 − 10) days. Filing back tax returns You figured 10% of the total days rented to others at a fair rental price is 16 days. Filing back tax returns Your family also used the apartment for 7 other days during the year. Filing back tax returns You used the apartment as a home because you used it for personal purposes for 17 days. Filing back tax returns That is more than the greater of 14 days or 10% of the 160 days it was rented (16 days). Filing back tax returns Minimal rental use. Filing back tax returns   If you use the dwelling unit as a home and you rent it less than 15 days during the year, that period is not treated as rental activity. Filing back tax returns See Used as a home but rented less than 15 days , later, for more information. Filing back tax returns Limit on deductions. Filing back tax returns   Renting a dwelling unit that is considered a home is not a passive activity. Filing back tax returns Instead, if your rental expenses are more than your rental income, some or all of the excess expenses cannot be used to offset income from other sources. Filing back tax returns The excess expenses that cannot be used to offset income from other sources are carried forward to the next year and treated as rental expenses for the same property. Filing back tax returns Any expenses carried forward to the next year will be subject to any limits that apply for that year. Filing back tax returns This limitation will apply to expenses carried forward to another year even if you do not use the property as your home for that subsequent year. Filing back tax returns   To figure your deductible rental expenses for this year and any carryover to next year, use Worksheet 9-1. Filing back tax returns Reporting Income and Deductions Property not used for personal purposes. Filing back tax returns   If you do not use a dwelling unit for personal purposes, see How To Report Rental Income and Expenses , later, for how to report your rental income and expenses. Filing back tax returns Property used for personal purposes. Filing back tax returns   If you do use a dwelling unit for personal purposes, then how you report your rental income and expenses depends on whether you used the dwelling unit as a home. Filing back tax returns Not used as a home. Filing back tax returns   If you use a dwelling unit for personal purposes, but not as a home, report all the rental income in your income. Filing back tax returns Since you used the dwelling unit for personal purposes, you must divide your expenses between the rental use and the personal use as described earlier in Dividing Expenses . Filing back tax returns The expenses for personal use are not deductible as rental expenses. Filing back tax returns   Your deductible rental expenses can be more than your gross rental income; however, see Limits on Rental Losses , later. Filing back tax returns Used as a home but rented less than 15 days. Filing back tax returns   If you use a dwelling unit as a home and you rent it less than 15 days during the year, its primary function is not considered to be rental and it should not be reported on Schedule E (Form 1040). Filing back tax returns You are not required to report the rental income and rental expenses from this activity. Filing back tax returns The expenses, including qualified mortgage interest, property taxes, and any qualified casualty loss will be reported as normally allowed on Schedule A (Form 1040). Filing back tax returns See the Instructions for Schedule A (Form 1040) for more information on deducting these expenses. Filing back tax returns Used as a home and rented 15 days or more. Filing back tax returns   If you use a dwelling unit as a home and rent it 15 days or more during the year, include all your rental income in your income. Filing back tax returns Since you used the dwelling unit for personal purposes, you must divide your expenses between the rental use and the personal use as described earlier in Dividing Expenses . Filing back tax returns The expenses for personal use are not deductible as rental expenses. Filing back tax returns   If you had a net profit from renting the dwelling unit for the year (that is, if your rental income is more than the total of your rental expenses, including depreciation), deduct all of your rental expenses. Filing back tax returns You do not need to use Worksheet 9-1. Filing back tax returns   However, if you had a net loss from renting the dwelling unit for the year, your deduction for certain rental expenses is limited. Filing back tax returns To figure your deductible rental expenses and any carryover to next year, use Worksheet 9-1. Filing back tax returns Depreciation You recover the cost of income-producing property through yearly tax deductions. Filing back tax returns You do this by depreciating the property; that is, by deducting some of the cost each year on your tax return. Filing back tax returns Three factors determine how much depreciation you can deduct each year: (1) your basis in the property, (2) the recovery period for the property, and (3) the depreciation method used. Filing back tax returns You cannot simply deduct your mortgage or principal payments, or the cost of furniture, fixtures, and equipment, as an expense. Filing back tax returns You can deduct depreciation only on the part of your property used for rental purposes. Filing back tax returns Depreciation reduces your basis for figuring gain or loss on a later sale or exchange. Filing back tax returns You may have to use Form 4562 to figure and report your depreciation. Filing back tax returns See How To Report Rental Income and Expenses , later. Filing back tax returns Alternative minimum tax (AMT). Filing back tax returns    If you use accelerated depreciation, you may be subject to the AMT. Filing back tax returns Accelerated depreciation allows you to deduct more depreciation earlier in the recovery period than you could deduct using a straight line method (same deduction each year). Filing back tax returns Claiming the correct amount of depreciation. Filing back tax returns   You should claim the correct amount of depreciation each tax year. Filing back tax returns If you did not claim all the depreciation you were entitled to deduct, you must still reduce your basis in the property by the full amount of depreciation that you could have deducted. Filing back tax returns   If you deducted an incorrect amount of depreciation for property in any year, you may be able to make a correction by filing Form 1040X, Amended U. Filing back tax returns S Individual Income Tax Return. Filing back tax returns If you are not allowed to make the correction on an amended return, you can change your accounting method to claim the correct amount of depreciation. Filing back tax returns See Claiming the correct amount of depreciation in chapter 2 of Publication 527 for more information. Filing back tax returns Changing your accounting method to deduct unclaimed depreciation. Filing back tax returns   To change your accounting method, you generally must file Form 3115, Application for Change in Accounting Method, to get the consent of the IRS. Filing back tax returns In some instances, that consent is automatic. Filing back tax returns For more information, see chapter 1 of Publication 946. Filing back tax returns Land. Filing back tax returns   You cannot depreciate the cost of land because land generally does not wear out, become obsolete, or get used up. Filing back tax returns The costs of clearing, grading, planting, and landscaping are usually all part of the cost of land and cannot be depreciated. Filing back tax returns More information. Filing back tax returns   See Publication 527 for more information about depreciating rental property and see Publication 946 for more information about depreciation. Filing back tax returns 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. Filing back tax returns You must consider these rules in the order shown below. Filing back tax returns At-risk rules. Filing back tax returns These rules are applied first if there is investment in your rental real estate activity for which you are not at risk. Filing back tax returns This applies only if the real property was placed in service after 1986. Filing back tax returns Passive activity limits. Filing back tax returns 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. Filing back tax returns However, there are exceptions. Filing back tax returns 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. Filing back tax returns Losses from holding real property (other than mineral property) placed in service before 1987 are not subject to the at-risk rules. Filing back tax returns 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. Filing back tax returns 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. Filing back tax returns See Publication 925 for more information. Filing back tax returns Passive Activity Limits In most cases, all rental real estate activities (except those of certain real estate professionals, discussed later) are passive activities. Filing back tax returns 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. Filing back tax returns Limits on passive activity deductions and credits. Filing back tax returns    Deductions or losses from passive activities are limited. Filing back tax returns You generally cannot offset income, other than passive income, with losses from passive activities. Filing back tax returns Nor can you offset taxes on income, other than passive income, with credits resulting from passive activities. Filing back tax returns Any excess loss or credit is carried forward to the next tax year. Filing back tax returns   For a detailed discussion of these rules, see Publication 925. Filing back tax returns    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. Filing back tax returns Real estate professionals. Filing back tax returns   Rental activities in which you materially participated during the year are not passive activities if, for that year, you were a real estate professional. Filing back tax returns For a detailed discussion of the requirements, see Publication 527. Filing back tax returns For a detailed discussion of material participation, see Publication 925. Filing back tax returns 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. Filing back tax returns Instead, follow the rules explained in Personal Use of Dwelling Unit (Including Vacation Home), earlier. Filing back tax returns Exception for Rental Real Estate Activities 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. Filing back tax returns This special allowance is an exception to the general rule disallowing losses in excess of income from passive activities. Filing back tax returns 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. Filing back tax returns Active participation. Filing back tax returns   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. Filing back tax returns Management decisions that may count as active participation include approving new tenants, deciding on rental terms, approving expenditures, and similar decisions. Filing back tax returns Maximum special allowance. Filing back tax returns   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. Filing back tax returns   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. Filing back tax returns 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. Filing back tax returns   Generally, if your MAGI is $150,000 or more ($75,000 or more if you are married filing separately), there is no special allowance. Filing back tax returns More information. Filing back tax returns   See Publication 925 for more information on the passive loss limits, including information on the treatment of unused disallowed passive losses and credits and the treatment of gains and losses realized on the disposition of a passive activity. Filing back tax returns How To Report Rental Income and Expenses The basic form for reporting residential rental income and expenses is Schedule E (Form 1040). Filing back tax returns However, do not use that schedule to report a not-for-profit activity. Filing back tax returns See Not Rented for Profit, earlier. Filing back tax returns Providing substantial services. Filing back tax returns   If you provide substantial services that are primarily for your tenant's convenience, such as regular cleaning, changing linen, or maid service, 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 (Sole Proprietorship). Filing back tax returns Substantial services do not include the furnishing of heat and light, cleaning of public areas, trash collection, etc. Filing back tax returns For information, see Publication 334, Tax Guide for Small Business. Filing back tax returns You also may have to pay self-employment tax on your rental income using Schedule SE (Form 1040), Self-Employment Tax. Filing back tax returns   Use Form 1065, U. Filing back tax returns S. Filing back tax returns Return of Partnership Income, if your rental activity is a partnership (including a partnership with your spouse unless it is a qualified joint venture). Filing back tax returns Qualified joint venture. Filing back tax returns   If you and your spouse each materially participate 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. Filing back tax returns 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. Filing back tax returns For more information, see Publication 527. Filing back tax returns Form 1098, Mortgage Interest Statement. Filing back tax returns    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. Filing back tax returns 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. Filing back tax returns Attach a statement to your return showing the name and address of the other person. Filing back tax returns In the left margin of Schedule E, next to line 13, enter “See attached. Filing back tax returns ” Schedule E (Form 1040) If you rent buildings, rooms, or apartments, and provide basic services such as heat and light, trash collection, etc. Filing back tax returns , you normally report your rental income and expenses on Schedule E, Part I. Filing back tax returns List your total income, expenses, and depreciation for each rental property. Filing back tax returns Be sure to enter the number of fair rental and personal use days on line 2. Filing back tax returns If you have more than three rental or royalty properties, complete and attach as many Schedules E as are needed to list the properties. Filing back tax returns Complete lines 1 and 2 for each property. Filing back tax returns However, fill in lines 23a through 26 on only one Schedule E. Filing back tax returns On Schedule E, page 1, line 18, enter the depreciation you are claiming for each property. Filing back tax returns To find out if you need to attach Form 4562, see Form 4562, in chapter 3 of Publication 527. Filing back tax returns If you have a loss from your rental real estate activity, you also may need to complete one or both of the following forms. Filing back tax returns Form 6198, At-Risk Limitations. Filing back tax returns See At-Risk Rules , earlier. Filing back tax returns Also see Publication 925. Filing back tax returns Form 8582, Passive Activity Loss Limitations. Filing back tax returns See Passive Activity Limits , earlier. Filing back tax returns Page 2 of Schedule E is used to report income or loss from partnerships, S corporations, estates, trusts, and real estate mortgage investment conduits. Filing back tax returns 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. Filing back tax returns Also, include the amount from line 26 (Part I) in the “Total income or (loss)” on line 41 (Part V). Filing back tax returns Worksheet 9-1. Filing back tax returns Worksheet for Figuring Rental Deductions for a Dwelling Unit Used as a Home Use this worksheet only if you answer “yes” to all of the following questions. Filing back tax returns Did you use the dwelling unit as a home this year? (See Dwelling Unit Used as a Home . Filing back tax returns ) Did you rent the dwelling unit at a fair rental price 15 days or more this year? Is the total of your rental expenses and depreciation more than your rental income? PART I. Filing back tax returns Rental Use Percentage A. Filing back tax returns Total days available for rent at fair rental price A. Filing back tax returns       B. Filing back tax returns Total days available for rent (line A) but not rented B. Filing back tax returns       C. Filing back tax returns Total days of rental use. Filing back tax returns Subtract line B from line A C. Filing back tax returns       D. Filing back tax returns Total days of personal use (including days rented at less than fair rental price) D. Filing back tax returns       E. Filing back tax returns Total days of rental and personal use. Filing back tax returns Add lines C and D E. Filing back tax returns       F. Filing back tax returns Percentage of expenses allowed for rental. Filing back tax returns Divide line C by line E     F. Filing back tax returns   PART II. Filing back tax returns Allowable Rental Expenses 1. Filing back tax returns Enter rents received 1. Filing back tax returns   2a. Filing back tax returns Enter the rental portion of deductible home mortgage interest and qualified mortgage insurance premiums (see instructions) 2a. Filing back tax returns       b. Filing back tax returns Enter the rental portion of real estate taxes b. Filing back tax returns       c. Filing back tax returns Enter the rental portion of deductible casualty and theft losses (see instructions) c. Filing back tax returns       d. Filing back tax returns Enter direct rental expenses (see instructions) d. Filing back tax returns       e. Filing back tax returns Fully deductible rental expenses. Filing back tax returns Add lines 2a–2d. Filing back tax returns Enter here and  on the appropriate lines on Schedule E (see instructions) 2e. Filing back tax returns   3. Filing back tax returns Subtract line 2e from line 1. Filing back tax returns If zero or less, enter -0- 3. Filing back tax returns   4a. Filing back tax returns Enter the rental portion of expenses directly related to operating or maintaining  the dwelling unit (such as repairs, insurance, and utilities) 4a. Filing back tax returns       b. Filing back tax returns Enter the rental portion of excess mortgage interest and qualified mortgage insurance premiums (see instructions) b. Filing back tax returns       c. Filing back tax returns Carryover of operating expenses from 2012 worksheet c. Filing back tax returns       d. Filing back tax returns Add lines 4a–4c d. Filing back tax returns       e. Filing back tax returns Allowable expenses. Filing back tax returns Enter the smaller of line 3 or line 4d (see instructions) 4e. Filing back tax returns   5. Filing back tax returns Subtract line 4e from line 3. Filing back tax returns If zero or less, enter -0- 5. Filing back tax returns   6a. Filing back tax returns Enter the rental portion of excess casualty and theft losses (see instructions) 6a. Filing back tax returns       b. Filing back tax returns Enter the rental portion of depreciation of the dwelling unit b. Filing back tax returns       c. Filing back tax returns Carryover of excess casualty losses and depreciation from 2012 worksheet c. Filing back tax returns       d. Filing back tax returns Add lines 6a–6c d. Filing back tax returns       e. Filing back tax returns Allowable excess casualty and theft losses and depreciation. Filing back tax returns Enter the smaller of  line 5 or line 6d (see instructions) 6e. Filing back tax returns   PART III. Filing back tax returns Carryover of Unallowed Expenses to Next Year 7a. Filing back tax returns Operating expenses to be carried over to next year. Filing back tax returns Subtract line 4e from line 4d 7a. Filing back tax returns   b. Filing back tax returns Excess casualty and theft losses and depreciation to be carried over to next year. Filing back tax returns  Subtract line 6e from line 6d b. Filing back tax returns   Worksheet 9-1 Instructions. Filing back tax returns Worksheet for Figuring Rental Deductions for a Dwelling Unit Used as a Home Caution. Filing back tax returns Use the percentage determined in Part I, line F, to figure the rental portions to enter on lines 2a–2c, 4a–4b, and 6a–6b of  Part II. Filing back tax returns Line 2a. Filing back tax returns Figure the mortgage interest on the dwelling unit that you could deduct on Schedule A as if you had not rented the unit. Filing back tax returns Do not include interest on a loan that did not benefit the dwelling unit. Filing back tax returns For example, do not include interest on a home equity loan used to pay off credit cards or other personal loans, buy a car, or pay college tuition. Filing back tax returns Include interest on a loan used to buy, build, or improve the dwelling unit, or to refinance such a loan. Filing back tax returns Include the rental portion of this interest in the total you enter on line 2a of the worksheet. Filing back tax returns   Figure the qualified mortgage insurance premiums on the dwelling unit that you could deduct on line 13 of Schedule A as if you had not rented the unit. Filing back tax returns See the Schedule A instructions. Filing back tax returns However, figure your adjusted gross income (Form 1040, line 38) without your rental income and expenses from the dwelling unit. Filing back tax returns See Line 4b to deduct the part of the qualified mortgage insurance premiums not allowed because of the adjusted gross income limit. Filing back tax returns Include the rental portion of the amount from Schedule A, line 13, in the total you enter on line 2a of the worksheet. Filing back tax returns   Note. Filing back tax returns Do not file this Schedule A or use it to figure the amount to deduct on line 13 of that schedule. Filing back tax returns Instead, figure the personal portion on a separate Schedule A. Filing back tax returns If you have deducted mortgage interest or qualified mortgage insurance premiums on the dwelling unit on other forms, such as Schedule C or F, remember to reduce your Schedule A deduction by that amount. Filing back tax returns           Line 2c. Filing back tax returns Figure the casualty and theft losses related to the dwelling unit that you could deduct on Schedule A as if you had not rented the dwelling unit. Filing back tax returns To do this, complete Section A of Form 4684, Casualties and Thefts, treating the losses as personal losses. Filing back tax returns If any of the loss is due to a federally declared disaster, see the Instructions for Form 4684. Filing back tax returns On Form 4684, line 17, enter 10% of your adjusted gross income figured without your rental income and expenses from the dwelling unit. Filing back tax returns Enter the rental portion of the result from Form 4684, line 18, on line 2c of this worksheet. Filing back tax returns   Note. Filing back tax returns Do not file this Form 4684 or use it to figure your personal losses on Schedule A. Filing back tax returns Instead, figure the personal portion on a separate Form 4684. Filing back tax returns           Line 2d. Filing back tax returns Enter the total of your rental expenses that are directly related only to the rental activity. Filing back tax returns These include interest on loans used for rental activities other than to buy, build, or improve the dwelling unit. Filing back tax returns Also include rental agency fees, advertising, office supplies, and depreciation on office equipment used in your rental activity. Filing back tax returns           Line 2e. Filing back tax returns You can deduct the amounts on lines 2a, 2b, 2c, and 2d as rental expenses on Schedule E even if your rental expenses are more than your rental income. Filing back tax returns Enter the amounts on lines 2a, 2b, 2c, and 2d on the appropriate lines of Schedule E. Filing back tax returns           Line 4b. Filing back tax returns On line 2a, you entered the rental portion of the mortgage interest and qualified mortgage insurance premiums you could deduct on Schedule A if you had not rented the dwelling unit. Filing back tax returns If you had additional mortgage interest and qualified mortgage insurance premiums that would not be deductible on Schedule A because of limits imposed on them, enter on line 4b of this worksheet the rental portion of those excess amounts. Filing back tax returns Do not include interest on a loan that did not benefit the dwelling unit (as explained in the line 2a instructions). Filing back tax returns           Line 4e. Filing back tax returns You can deduct the amounts on lines 4a, 4b, and 4c as rental expenses on Schedule E only to the extent they are not more than the amount on line 4e. Filing back tax returns *           Line 6a. Filing back tax returns To find the rental portion of excess casualty and theft losses, use the Form 4684 you prepared for line 2c of this worksheet. Filing back tax returns   A. Filing back tax returns Enter the amount from Form 4684, line 10       B. Filing back tax returns Enter the rental portion of line A       C. Filing back tax returns Enter the amount from line 2c of this worksheet       D. Filing back tax returns Subtract line C from line B. Filing back tax returns Enter the result here and on line 6a of this worksheet               Line 6e. Filing back tax returns You can deduct the amounts on lines 6a, 6b, and 6c as rental expenses on Schedule E only to the extent they are not more than the amount on line 6e. Filing back tax returns * *Allocating the limited deduction. Filing back tax returns If you cannot deduct all of the amount on line 4d or 6d this year, you can allocate the allowable deduction in any way you wish among the expenses included on line 4d or 6d. Filing back tax returns Enter the amount you allocate to each expense on the appropriate line of Schedule E, Part I. Filing back tax returns Prev  Up  Next   Home   More Online Publications

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Tax Fraud Alerts
"If it sounds too good to be true, it probably is!" Seek expert advice before you subscribe to any scheme that offers instant wealth or exemption from your obligation as a United States Citizen to pay taxes. Buying into a tax evasion scheme can be very costly. To arrive at the 'Tax Fraud Alerts' page quickly, use the Keyword 'Fraud' from www.irs.gov

Criminal Investigation (CI) At-a-Glance
Criminal Investigation (CI) serves the American public by investigating potential criminal violations of the Internal Revenue Code and related financial crimes in a manner that fosters confidence in the tax system and compliance with the law.

What Criminal Investigation Does
Some people bend the tax law -- others break it. Criminal Investigation's job is to pursue the lawbreakers.

Criminal Investigation Statistical Data
Enforcement statistics show trends in areas of fraud. This data assists Criminal Investigation in determining where to focus our resources.

IRS Criminal Investigation Press Releases - Calendar Year 2014
Here you will find links to IRS Criminal Investigation press releases issued by the IRS Special Agents in Charge

How to Make an Offshore Voluntary Disclosure
Taxpayers wanting to report undisclosed income or assets should come in through the IRS Voluntary Disclosure Program.

Criminal Investigation Special Agent Careers
A Career In Action! As an IRS Criminal Investigation (CI) Special Agent, you will pull together your accounting and law enforcement skills. CI special agents are duly sworn law enforcement officers who investigate complex financial crimes associated with tax evasion, money laundering, narcotics, public corruption, and much more. Are You Ready For The Challenge?

Information for Retired IRS Criminal Investigation Special Agents
Information for retired IRS Criminal Investigation special agents to apply to "Retired Law Special Agent" credentials under the Law Enforcement Officers Safety Act of 2004.

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The Filing Back Tax Returns

Filing back tax returns Internal Revenue Bulletin:  2011-12  March 21, 2011  Rev. Filing back tax returns Proc. Filing back tax returns 2011-21 Table of Contents SECTION 1. Filing back tax returns PURPOSE SECTION 2. Filing back tax returns BACKGROUND SECTION 3. Filing back tax returns SCOPE SECTION 4. Filing back tax returns APPLICATION SECTION 5. Filing back tax returns EFFECTIVE DATE SECTION 6. Filing back tax returns EFFECT ON OTHER DOCUMENTS SECTION 7. Filing back tax returns DRAFTING INFORMATION SECTION 1. Filing back tax returns PURPOSE This revenue procedure provides: (1) limitations on depreciation deductions for owners of passenger automobiles first placed in service by the taxpayer during calendar year 2011, including separate tables of limitations on depreciation deductions for trucks and vans; (2) the amounts that must be included in income by lessees of passenger automobiles first leased by the taxpayer during calendar year 2011, including a separate table of inclusion amounts for lessees of trucks and vans; and (3) revised tables of depreciation limitations and lessee inclusion amounts for passenger automobiles that were first placed in service or first leased by the taxpayer, respectively, during 2010 and to which the 50 percent additional first year depreciation deduction under § 168(k)(1)(A) of the Internal Revenue Code or the 100 percent additional first year depreciation deduction under § 168(k)(5) applies. Filing back tax returns The tables detailing these depreciation limitations and lessee inclusion amounts reflect the automobile price inflation adjustments required by § 280F(d)(7). Filing back tax returns SECTION 2. Filing back tax returns BACKGROUND . Filing back tax returns 01 For owners of passenger automobiles, § 280F(a) imposes dollar limitations on the depreciation deduction for the year the taxpayer places the passenger automobile in service and for each succeeding year. Filing back tax returns For passenger automobiles placed in service after 1988, § 280F(d)(7) requires the Internal Revenue Service to increase the amounts allowable as depreciation deductions by a price inflation adjustment amount. Filing back tax returns The method of calculating this price inflation amount for trucks and vans placed in service in or after calendar year 2003 uses a different CPI “automobile component” (the “new trucks” component) than that used in the price inflation amount calculation for other passenger automobiles (the “new cars” component), resulting in somewhat higher depreciation deductions for trucks and vans. Filing back tax returns This change reflects the higher rate of price inflation for trucks and vans since 1988. Filing back tax returns . Filing back tax returns 02 Section 2022(a) of the Small Business Jobs Act of 2010, Pub. Filing back tax returns L. Filing back tax returns No. Filing back tax returns 111-240, 124 Stat. Filing back tax returns 2504 (September 27, 2010), extended the 50 percent additional first year depreciation deduction under § 168(k) to qualified property (as defined in § 168(k)(2)) acquired by the taxpayer after December 31, 2007, and before January 1, 2011, if no written binding contract for the acquisition of the property existed before January 1, 2008, and if the taxpayer places the property in service generally before January 1, 2011. Filing back tax returns Section 401(a) of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, Pub. Filing back tax returns L. Filing back tax returns No. Filing back tax returns 111-312, 124 Stat. Filing back tax returns 3296 (Dec. Filing back tax returns 17, 2010) (the “Act”) further extended the 50 percent additional first year depreciation deduction under § 168(k) to qualified property acquired by the taxpayer after December 31, 2007, and before January 1, 2013, if no written binding contract for the acquisition of the property existed before January 1, 2008, and if the taxpayer places the property in service generally before January 1, 2013. Filing back tax returns Section 401(b) of the Act further amended § 168(k) by adding § 168(k)(5). Filing back tax returns It allows a 100 percent additional first year depreciation deduction for qualified property acquired by a taxpayer after September 8, 2010, and before January 1, 2012, if the taxpayer places the property in service generally before January 1, 2012. Filing back tax returns Section 168(k)(2)(F)(i) increases the first year depreciation allowed under § 280F(a)(1)(A)(i) by $8,000 for passenger automobiles to which the additional first year depreciation deduction under § 168(k) (hereinafter, referred to as “§ 168(k) additional first year depreciation deduction”) applies. Filing back tax returns . Filing back tax returns 03 Section 168(k)(2)(D)(i) provides that the § 168(k) additional first year depreciation deduction does not apply to any property required to be depreciated under the alternative depreciation system of § 168(g), including property described in § 280F(b)(1). Filing back tax returns Section 168(k)(2)(D)(iii) permits a taxpayer to elect out of the § 168(k) additional first year depreciation deduction for any class of property. Filing back tax returns Section 168(k)(4), as amended by the Act, permits a corporation to elect to increase the alternative minimum tax (“AMT”) credit limitation under § 53(c), instead of claiming the § 168(k) additional first year depreciation deduction for all eligible qualified property placed in service after December 31, 2010, that is round 2 extension property (as defined in § 168(k)(4)(I)(iv). Filing back tax returns Accordingly, this revenue procedure provides tables for passenger automobiles for which the § 168(k) additional first year depreciation deduction applies. Filing back tax returns This revenue procedure also provides tables for passenger automobiles for which the § 168(k) additional first year depreciation deduction does not apply, either because taxpayer (1) purchased the passenger automobile used; (2) did not use the passenger automobile during 2011 more than 50 percent for business purposes; (3) elected out of the § 168(k) additional first year depreciation deduction pursuant to § 168(k)(2)(D)(iii); or (4) elected to increase the § 53 AMT credit limitation in lieu of claiming § 168(k) additional first year depreciation. Filing back tax returns . Filing back tax returns 04 Section 280F(c) requires a reduction in the deduction allowed to the lessee of a leased passenger automobile. Filing back tax returns The reduction must be substantially equivalent to the limitations on the depreciation deductions imposed on owners of passenger automobiles. Filing back tax returns Under § 1. Filing back tax returns 280F-7(a) of the Income Tax Regulations, this reduction requires a lessee to include in gross income an amount determined by applying a formula to the amount obtained from a table. Filing back tax returns One table applies to lessees of trucks and vans and another table applies to all other passenger automobiles. Filing back tax returns Each table shows inclusion amounts for a range of fair market values for each taxable year after the passenger automobile is first leased. Filing back tax returns SECTION 3. Filing back tax returns SCOPE . Filing back tax returns 01 The limitations on depreciation deductions in section 4. Filing back tax returns 01(2) of this revenue procedure apply to passenger automobiles (other than leased passenger automobiles) that are placed in service by the taxpayer in calendar year 2011, and continue to apply for each taxable year that the passenger automobile remains in service. Filing back tax returns . Filing back tax returns 02 The tables in section 4. Filing back tax returns 02 of this revenue procedure apply to leased passenger automobiles for which the lease term begins during calendar year 2011. Filing back tax returns Lessees of these passenger automobiles must use these tables to determine the inclusion amount for each taxable year during which the passenger automobile is leased. Filing back tax returns See Rev. Filing back tax returns Proc. Filing back tax returns 2006-18, 2006-1 C. Filing back tax returns B. Filing back tax returns 645, for passenger automobiles first leased during calendar year 2006; Rev. Filing back tax returns Proc. Filing back tax returns 2007-30, 2007-1 C. Filing back tax returns B. Filing back tax returns 1104, for passenger automobiles first leased during calendar year 2007; Rev. Filing back tax returns Proc. Filing back tax returns 2008-22, 2008-1 C. Filing back tax returns B. Filing back tax returns 658, for passenger automobiles first leased during calendar year 2008; Rev. Filing back tax returns Proc. Filing back tax returns 2009-24, 2009-1 C. Filing back tax returns B. Filing back tax returns 885, for passenger automobiles first leased during calendar year 2009; and Rev. Filing back tax returns Proc. Filing back tax returns 2010-18, 2010-1 C. Filing back tax returns B. Filing back tax returns 427, as amplified and modified by section 4. Filing back tax returns 03 of this revenue procedure, for passenger automobiles first leased during calendar year 2010. Filing back tax returns SECTION 4. Filing back tax returns APPLICATION . Filing back tax returns 01 Limitations on Depreciation Deductions for Certain Automobiles. Filing back tax returns (1) Amount of the inflation adjustment. Filing back tax returns (a) Passenger automobiles (other than trucks or vans). Filing back tax returns Under § 280F(d)(7)(B)(i), the automobile price inflation adjustment for any calendar year is the percentage (if any) by which the CPI automobile component for October of the preceding calendar year exceeds the CPI automobile component for October 1987. Filing back tax returns Section 280F(d)(7)(B)(ii) defines the term “CPI automobile component” as the automobile component of the Consumer Price Index for all Urban Consumers published by the Department of Labor. Filing back tax returns The new car component of the CPI was 115. Filing back tax returns 2 for October 1987 and 137. Filing back tax returns 880 for October 2010. Filing back tax returns The October 2010 index exceeded the October 1987 index by 22. Filing back tax returns 680. Filing back tax returns Therefore, the automobile price inflation adjustment for 2011 for passenger automobiles (other than trucks and vans) is 19. Filing back tax returns 69 percent (22. Filing back tax returns 680/115. Filing back tax returns 2 x 100%). Filing back tax returns The dollar limitations in § 280F(a) are multiplied by a factor of 0. Filing back tax returns 1969, and the resulting increases, after rounding to the nearest $100, are added to the 1988 limitations to give the depreciation limitations applicable to passenger automobiles (other than trucks and vans) for calendar year 2011. Filing back tax returns This adjustment applies to all passenger automobiles (other than trucks and vans) that are first placed in service in calendar year 2011. Filing back tax returns (b) Trucks and vans. Filing back tax returns To determine the dollar limitations for trucks and vans first placed in service during calendar year 2011, the Service uses the new truck component of the CPI instead of the new car component. Filing back tax returns The new truck component of the CPI was 112. Filing back tax returns 4 for October 1987 and 142. Filing back tax returns 556 for October 2010. Filing back tax returns The October 2010 index exceeded the October 1987 index by 30. Filing back tax returns 156. Filing back tax returns Therefore, the automobile price inflation adjustment for 2011 for trucks and vans is 26. Filing back tax returns 83 percent (30. Filing back tax returns 156/112. Filing back tax returns 4 x 100%). Filing back tax returns The dollar limitations in § 280F(a) are multiplied by a factor of 0. Filing back tax returns 2683, and the resulting increases, after rounding to the nearest $100, are added to the 1988 limitations to give the depreciation limitations for trucks and vans. Filing back tax returns This adjustment applies to all trucks and vans that are first placed in service in calendar year 2011. Filing back tax returns (2) Amount of the limitation. Filing back tax returns Tables 1 through 4 contain the dollar amount of the depreciation limitation for each taxable year for passenger automobiles a taxpayer places in service in calendar year 2011. Filing back tax returns Use Table 1 for a passenger automobile (other than a truck or van), and Table 2 for a truck or van, placed in service in calendar year 2011 for which the § 168(k) additional first year depreciation deduction applies. Filing back tax returns Use Table 3 for a passenger automobile (other than a truck or van), and Table 4 for a truck or van, placed in service in calendar year 2011 for which the § 168(k) additional first year depreciation deduction does not apply. Filing back tax returns The Service intends to issue additional guidance addressing the interaction between the 100 percent additional first year depreciation deduction and § 280F(a) for the taxable years subsequent to the first taxable year. Filing back tax returns REV. Filing back tax returns PROC. Filing back tax returns 2011-21 TABLE 1 DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) PLACED IN SERVICE IN CALENDAR YEAR 2011 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES Tax Year Amount 1st Tax Year $11,060 2nd Tax Year $4,900 3rd Tax Year $2,950 Each Succeeding Year $1,775 REV. Filing back tax returns PROC. Filing back tax returns 2011-21 TABLE 2 DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE IN CALENDAR YEAR 2011 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES Tax Year Amount 1st Tax Year $11,260 2nd Tax Year $5,200 3rd Tax Year $3,150 Each Succeeding Year $1,875 REV. Filing back tax returns PROC. Filing back tax returns 2011-21 TABLE 3 DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) PLACED IN SERVICE IN CALENDAR YEAR 2011 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION DOES NOT APPLY Tax Year Amount 1st Tax Year $3,060 2nd Tax Year $4,900 3rd Tax Year $2,950 Each Succeeding Year $1,775 REV. Filing back tax returns PROC. Filing back tax returns 2011-21 TABLE 4 DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE IN CALENDAR YEAR 2011 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION DOES NOT APPLY Tax Year Amount 1st Tax Year $3,260 2nd Tax Year $5,200 3rd Tax Year $3,150 Each Succeeding Year $1,875 . Filing back tax returns 02 Inclusions in Income of Lessees of Passenger Automobiles. Filing back tax returns A taxpayer must follow the procedures in § 1. Filing back tax returns 280F-7(a) for determining the inclusion amounts for passenger automobiles first leased in calendar year 2011. Filing back tax returns In applying these procedures, lessees of passenger automobiles other than trucks and vans should use Table 5 of this revenue procedure, while lessees of trucks and vans should use Table 6 of this revenue procedure. Filing back tax returns REV. Filing back tax returns PROC. Filing back tax returns 2011-21 TABLE 5 DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2011 Fair Market Value of Passenger Automobile Tax Year During Lease Over Not Over 1st 2nd 3rd 4th 5th & later $18,500 $19,000 3 8 11 13 16 19,000 19,500 4 9 13 15 18 19,500 20,000 4 10 15 17 20 20,000 20,500 5 11 16 19 23 20,500 21,000 5 12 18 21 25 21,000 21,500 6 13 19 24 26 21,500 22,000 6 14 21 26 29 22,000 23,000 7 16 23 29 32 23,000 24,000 8 18 27 32 37 24,000 25,000 9 20 30 36 42 25,000 26,000 10 23 33 40 46 26,000 27,000 11 25 36 44 51 27,000 28,000 12 27 40 48 55 28,000 29,000 13 29 43 52 60 29,000 30,000 14 31 47 55 65 30,000 31,000 15 34 49 60 69 31,000 32,000 16 36 53 63 73 32,000 33,000 17 38 56 68 77 33,000 34,000 18 40 60 71 82 34,000 35,000 19 42 63 75 87 35,000 36,000 20 45 66 79 91 36,000 37,000 21 47 69 83 96 37,000 38,000 22 49 73 87 100 38,000 39,000 23 51 76 91 105 39,000 40,000 24 53 80 94 110 40,000 41,000 25 56 82 99 114 41,000 42,000 26 58 86 102 119 42,000 43,000 27 60 89 107 123 43,000 44,000 28 62 93 110 128 44,000 45,000 29 64 96 114 133 45,000 46,000 30 67 98 119 137 46,000 47,000 31 69 102 122 141 47,000 48,000 32 71 105 127 145 48,000 49,000 33 73 109 130 150 49,000 50,000 34 76 111 134 155 50,000 51,000 35 78 115 138 159 51,000 52,000 36 80 118 142 164 52,000 53,000 37 82 122 146 168 53,000 54,000 38 84 125 150 173 54,000 55,000 39 87 128 153 178 55,000 56,000 40 89 131 158 182 56,000 57,000 41 91 135 161 187 57,000 58,000 42 93 138 166 191 58,000 59,000 43 95 142 169 196 59,000 60,000 44 98 144 174 200 60,000 62,000 46 101 149 179 207 62,000 64,000 48 105 156 187 216 64,000 66,000 50 109 163 195 225 66,000 68,000 52 114 169 203 234 68,000 70,000 54 118 176 211 243 70,000 72,000 56 123 182 218 253 72,000 74,000 58 127 189 226 262 74,000 76,000 60 132 195 234 270 76,000 78,000 62 136 202 242 279 78,000 80,000 64 140 209 250 288 80,000 85,000 67 148 220 264 304 85,000 90,000 72 159 237 283 327 90,000 95,000 77 170 253 303 350 95,000 100,000 82 181 269 323 372 100,000 110,000 90 198 293 352 406 110,000 120,000 100 220 326 391 452 120,000 130,000 110 242 359 430 497 130,000 140,000 120 264 392 469 543 140,000 150,000 130 286 424 509 588 150,000 160,000 140 308 457 548 633 160,000 170,000 150 330 490 587 679 170,000 180,000 160 352 523 626 724 180,000 190,000 170 374 555 666 769 190,000 200,000 180 396 588 705 815 200,000 210,000 190 418 621 744 860 210,000 220,000 200 440 654 784 904 220,000 230,000 210 462 687 823 950 230,000 240,000 220 484 719 863 995 240,000 And up 230 506 752 902 1,040 REV. Filing back tax returns PROC. Filing back tax returns 2011-21 TABLE 6 DOLLAR AMOUNTS FOR TRUCKS AND VANS WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2011 Fair Market Value of Truck or Van Tax Year During Lease Over Not Over 1st 2nd 3rd 4th 5th & later $19,000 $19,500 3 7 9 12 13 19,500 20,000 3 8 11 14 15 20,000 20,500 4 9 13 15 18 20,500 21,000 4 10 15 17 20 21,000 21,500 5 11 16 20 22 21,500 22,000 5 12 18 22 24 22,000 23,000 6 14 20 24 29 23,000 24,000 7 16 24 28 32 24,000 25,000 8 18 27 32 37 25,000 26,000 9 20 31 36 41 26,000 27,000 10 23 33 40 46 27,000 28,000 11 25 37 43 51 28,000 29,000 12 27 40 48 55 29,000 30,000 13 29 43 52 60 30,000 31,000 14 31 47 56 64 31,000 32,000 15 34 49 60 69 32,000 33,000 16 36 53 63 74 33,000 34,000 17 38 56 68 78 34,000 35,000 18 40 60 71 83 35,000 36,000 19 43 62 76 87 36,000 37,000 20 45 66 79 92 37,000 38,000 21 47 69 83 97 38,000 39,000 22 49 73 87 101 39,000 40,000 23 51 76 91 105 40,000 41,000 24 54 79 95 109 41,000 42,000 25 56 82 99 114 42,000 43,000 26 58 86 103 118 43,000 44,000 27 60 89 107 123 44,000 45,000 28 62 93 110 128 45,000 46,000 29 65 95 115 132 46,000 47,000 30 67 99 118 137 47,000 48,000 31 69 102 123 141 48,000 49,000 32 71 106 126 146 49,000 50,000 33 73 109 130 151 50,000 51,000 34 76 112 134 155 51,000 52,000 35 78 115 138 160 52,000 53,000 36 80 118 143 164 53,000 54,000 37 82 122 146 169 54,000 55,000 38 84 125 150 173 55,000 56,000 39 87 128 154 177 56,000 57,000 40 89 131 158 182 57,000 58,000 41 91 135 162 186 58,000 59,000 42 93 138 166 191 59,000 60,000 43 95 142 169 196 60,000 62,000 45 99 146 175 203 62,000 64,000 47 103 153 183 212 64,000 66,000 49 107 160 191 221 66,000 68,000 51 112 166 199 229 68,000 70,000 53 116 173 206 239 70,000 72,000 55 121 179 214 248 72,000 74,000 57 125 186 222 257 74,000 76,000 59 129 192 231 266 76,000 78,000 61 134 198 239 275 78,000 80,000 63 138 205 246 285 80,000 85,000 66 146 217 260 300 85,000 90,000 71 157 233 280 322 90,000 95,000 76 168 250 299 345 95,000 100,000 81 179 266 319 368 100,000 110,000 89 196 290 348 402 110,000 120,000 99 218 323 387 447 120,000 130,000 109 240 355 427 493 130,000 140,000 119 262 388 466 538 140,000 150,000 129 284 421 505 583 150,000 160,000 139 306 454 544 629 160,000 170,000 149 328 487 583 674 170,000 180,000 159 350 519 623 719 180,000 190,000 169 372 552 662 765 190,000 200,000 179 394 585 701 810 200,000 210,000 189 416 618 740 856 210,000 220,000 199 438 651 779 901 220,000 230,000 209 460 683 819 946 230,000 240,000 219 482 716 858 992 240,000 And up 229 504 749 897 1,037 . Filing back tax returns 03 Revised Amounts for Passenger Automobiles Placed in Service During 2010. Filing back tax returns (1) Calculation of the Revised Amount. Filing back tax returns The revised depreciation limits provided in this section 4. Filing back tax returns 03 were calculated by increasing the existing limitations on the first year allowance in Rev. Filing back tax returns Proc. Filing back tax returns 2010-18 by $8,000 as provided in § 168(k)(2)(F)(i). Filing back tax returns (2) Amount of the Revised Limitation. Filing back tax returns For passenger automobiles (that are not trucks or vans) placed in service by the taxpayer in calendar year 2010 for which the § 168(k) additional first year depreciation deduction applies, Table 7 of this revenue procedure contains the revised dollar amount of the depreciation limitations for each taxable year. Filing back tax returns For trucks or vans placed in service by the taxpayer in calendar year 2010 for which the § 168(k) additional first year depreciation deduction applies, Table 8 of this revenue procedure contains the revised dollar amount of the depreciation limitations for each taxable year. Filing back tax returns If the § 168(k) additional first year depreciation deduction does not apply to a passenger automobile placed in service by the taxpayer in calendar year 2010, the depreciation limitations for each taxable year in Tables 1 and 2 of Rev. Filing back tax returns Proc. Filing back tax returns 2010-18 apply. Filing back tax returns REV. Filing back tax returns PROC. Filing back tax returns 2011-21 TABLE 7 DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) PLACED IN SERVICE IN CALENDAR YEAR 2010 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES Tax Year Amount 1st Tax Year $11,060 2nd Tax Year $4,900 3rd Tax Year $2,950 Each Succeeding Year $1,775 REV. Filing back tax returns PROC. Filing back tax returns 2011-21 TABLE 8 DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE IN CALENDAR YEAR 2010 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES Tax Year Amount 1st Tax Year $11,160 2nd Tax Year $5,100 3rd Tax Year $3,050 Each Succeeding Year $1,875 (3) Modification to lease inclusion amounts for 2010. Filing back tax returns The lease inclusion amounts in Tables 3 and 4 of Rev. Filing back tax returns Proc. Filing back tax returns 2010-18 are modified by striking the first four lines of the inclusion amounts in each table. Filing back tax returns Consequently, Table 3 of Rev. Filing back tax returns Proc. Filing back tax returns 2010-18 applies to passenger automobiles (other than trucks and vans) that are first leased by the taxpayer in calendar year 2010 with a fair market value over $18,500, and Table 4 of Rev. Filing back tax returns Proc. Filing back tax returns 2010-18 applies to trucks and vans that are first leased by the taxpayer in calendar year 2010 with a fair market value over $19,000. Filing back tax returns SECTION 5. Filing back tax returns EFFECTIVE DATE This revenue procedure, with the exception of section 4. Filing back tax returns 03, applies to passenger automobiles that a taxpayer first places in service or first leases during calendar year 2011. Filing back tax returns Section 4. Filing back tax returns 03 of this revenue procedure applies to passenger automobiles that a taxpayer first places in service or first leases during calendar year 2010. Filing back tax returns SECTION 6. Filing back tax returns EFFECT ON OTHER DOCUMENTS Rev. Filing back tax returns Proc. Filing back tax returns 2010-18 is amplified and modified. Filing back tax returns SECTION 7. Filing back tax returns DRAFTING INFORMATION The principal author of this revenue procedure is Bernard P. Filing back tax returns Harvey of the Office of Associate Chief Counsel (Income Tax & Accounting). Filing back tax returns For further information regarding this revenue procedure, contact Mr. Filing back tax returns Harvey at (202) 622-4930 (not a toll-free call). Filing back tax returns Prev  Up  Next   Home   More Internal Revenue Bulletins