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Irs Extention Form

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Irs Extention Form

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

Irs extention form 34. Irs extention form   Child Tax Credit Table of Contents Introduction Useful Items - You may want to see: Qualifying Child Amount of CreditLimits on the Credit Claiming the Credit Additional Child Tax Credit Completing Schedule 8812 (Form 1040A or 1040)Part I Parts II–IV Introduction The child tax credit is a credit that may reduce your tax by as much as $1,000 for each of your qualifying children. Irs extention form The additional child tax credit is a credit you may be able to take if you are not able to claim the full amount of the child tax credit. Irs extention form This chapter explains the following. Irs extention form Who is a qualifying child. Irs extention form The amount of the credit. Irs extention form How to claim the credit. Irs extention form The child tax credit and the additional child tax credit should not be confused with the child and dependent care credit discussed in chapter 32. Irs extention form If you have no tax. Irs extention form   Credits, such as the child tax credit or the credit for child and dependent care expenses, are used to reduce tax. Irs extention form If your tax on Form 1040, line 46, or Form 1040A, line 28, is zero, do not figure the child tax credit because there is no tax to reduce. Irs extention form However, you may qualify for the additional child tax credit on line 65 (Form 1040) or line 39 (Form 1040A). Irs extention form Useful Items - You may want to see: Publication 972 Child Tax Credit Form (and Instructions) Schedule 8812 (Form 1040A or 1040) Child Tax Credit W-4 Employee's Withholding Allowance Certificate Qualifying Child A qualifying child for purposes of the child tax credit is a child who: Is your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, or a descendant of any of them (for example, your grandchild, niece, or nephew), Was under age 17 at the end of 2013, Did not provide over half of his or her own support for 2013, Lived with you for more than half of 2013 (see Exceptions to time lived with you , later), Is claimed as a dependent on your return, Does not file a joint return for the year (or files it only as a claim for refund), and Was a U. Irs extention form S. Irs extention form citizen, a U. Irs extention form S. Irs extention form national, or a resident of the United States. Irs extention form If the child was adopted, see Adopted child , later. Irs extention form For each qualifying child you must check the box on Form 1040 or Form 1040A, line 6c. Irs extention form Example 1. Irs extention form Your son turned 17 on December 30, 2013. Irs extention form He is a citizen of the United States and you claimed him as a dependent on your return. Irs extention form He is not a qualifying child for the child tax credit because he was not under age 17 at the end of 2013. Irs extention form Example 2. Irs extention form Your daughter turned 8 years old in 2013. Irs extention form She is not a citizen of the United States, has an ITIN, and lived in Mexico all of 2013. Irs extention form She is not a qualifying child for the child tax credit because she was not a resident of the United States for 2013. Irs extention form Filers who have certain child dependents with an Individual Taxpayer Identification Number (ITIN). Irs extention form   If you are claiming a child tax credit or additional child tax credit for a child you identified on your tax return with an ITIN instead of an SSN, you must complete Part I of Schedule 8812 (Form 1040A or 1040). Irs extention form   Although a child may be your dependent, you may only claim a child tax credit or additional child tax credit for a dependent who is a citizen, national, or resident of the United States. Irs extention form To be treated as a resident of the United States, a child generally will need to meet the requirements of the substantial presence test. Irs extention form For more information about the substantial presence test, see Publication 519, U. Irs extention form S. Irs extention form Tax Guide for Aliens. Irs extention form Adopted child. Irs extention form   An adopted child is always treated as your own child. Irs extention form An adopted child includes a child lawfully placed with you for legal adoption. Irs extention form   If you are a U. Irs extention form S. Irs extention form citizen or U. Irs extention form S. Irs extention form national and your adopted child lived with you all year as a member of your household in 2013, that child meets condition (7) above to be a qualifying child for the child tax credit. Irs extention form Exceptions to time lived with you. Irs extention form   A child is considered to have lived with you for more than half of 2013 if the child was born or died in 2013 and your home was this child's home for more than half the time he or she was alive. Irs extention form Temporary absences by you or the child for special circumstances, such as for school, vacation, business, medical care, military service, or detention in a juvenile facility, count as time the child lived with you. Irs extention form   There are also exceptions for kidnapped children and children of divorced or separated parents. Irs extention form For details, see Residency Test in chapter 3. Irs extention form Qualifying child of more than one person. Irs extention form   A special rule applies if your qualifying child is the qualifying child of more than one person. Irs extention form For details, see Special Rule for Qualifying Child of More Than One Person in chapter 3. Irs extention form Amount of Credit The maximum amount you can claim for the credit is $1,000 for each qualifying child. Irs extention form Limits on the Credit You must reduce your child tax credit if either (1) or (2) applies. Irs extention form The amount on Form 1040, line 46, or Form 1040A, line 28, is less than the credit. Irs extention form If this amount is zero, you cannot take this credit because there is no tax to reduce. Irs extention form But you may be able to take the additional child tax credit. Irs extention form See Additional Child Tax Credit , later. Irs extention form Your modified adjusted gross income (AGI) is more than the amount shown below for your filing status. Irs extention form Married filing jointly - $110,000. Irs extention form Single, head of household, or qualifying widow(er) - $75,000. Irs extention form Married filing separately - $55,000. Irs extention form Modified AGI. Irs extention form   For purposes of the child tax credit, your modified AGI is your AGI plus the following amounts that may apply to you. Irs extention form Any amount excluded from income because of the exclusion of income from  Puerto Rico. Irs extention form On the dotted line next to Form 1040, line 38, enter the amount excluded and identify it as “EPRI. Irs extention form ” Also attach a copy of any Form(s) 499R-2/W-2PR to your return. Irs extention form Any amount on line 45 or line 50 of Form 2555, Foreign Earned Income. Irs extention form Any amount on line 18 of Form 2555-EZ, Foreign Earned Income Exclusion. Irs extention form Any amount on line 15 of Form 4563, Exclusion of Income for Bona Fide Residents of American Samoa. Irs extention form   If you do not have any of the above, your modified AGI is the same as your AGI. Irs extention form AGI. Irs extention form   Your AGI is the amount on Form 1040, line 38, or Form 1040A, line 22. Irs extention form Claiming the Credit To claim the child tax credit, you must file Form 1040 or Form 1040A. Irs extention form You cannot claim the child tax credit on Form 1040EZ. Irs extention form You must provide the name and identification number (usually a social security number) on your tax return for each qualifying child. Irs extention form If you claim the child tax credit with a child identified by an ITIN, you must also file Schedule 8812. Irs extention form To figure your credit, first review the Child Tax Credit Worksheet in your Form 1040 or 1040A instructions. Irs extention form If you are instructed to use Publication 972, you may not use the worksheet in your tax return instructions; instead, you must use Publication 972 to figure the credit. Irs extention form If you are not instructed to use Publication 972, you may use the Child Tax Credit Worksheet in your Form 1040 or 1040A instructions or Publication 972 to figure the credit. Irs extention form Additional Child Tax Credit This credit is for certain individuals who get less than the full amount of the child tax credit. Irs extention form The additional child tax credit may give you a refund even if you do not owe any tax. Irs extention form How to claim the additional child tax credit. Irs extention form   To claim the additional child tax credit, follow the steps below. Irs extention form Make sure you figured the amount, if any, of your child tax credit. Irs extention form See Claiming the Credit , earlier. Irs extention form If you answered “Yes” on line 9 or line 10 of the Child Tax Credit Worksheet in the Form 1040 or Form 1040A instructions, or line 13 of the Child Tax Credit Worksheet in Publication 972, use Parts II through IV of Schedule 8812 to see if you can take the additional child tax credit. Irs extention form If you have an additional child tax credit on line 13 of Schedule 8812, carry it to Form 1040, line 65, or Form 1040A, line 39. Irs extention form Completing Schedule 8812 (Form 1040A or 1040) Schedule 8812 contains four parts, but can really be thought of as two sections. Irs extention form Part I is distinct and separate from Parts II–IV. Irs extention form If all your children are identified by social security numbers or IRS adoption taxpayer identification numbers and you are not claiming the additional child tax credit, you do not need to complete or attach Schedule 8812 to your tax return. Irs extention form Part I You only need to complete Part I if you are claiming the child tax credit for a child identified by an IRS individual taxpayer identification number (ITIN). Irs extention form When completing Part I, only answer the questions with regard to children identified by an ITIN; you do not need to complete Part I of Schedule 8812 for any child that is identified by a social security number (SSN) or an IRS adoption taxpayer identification number (ATIN). Irs extention form If all the children for whom you checked the box in column 4 of line 6c on your Form 1040 or Form 1040A are identified by an SSN or an ATIN, you do not need to complete Part I of Schedule 8812. Irs extention form Parts II–IV Parts II–IV help you figure your additional child tax credit. Irs extention form Generally, you should only complete Parts II–IV if you are instructed to do so after completing the Child Tax Credit Worksheet in your tax return instructions or Publication 972. 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