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1040ez Instructions 2011

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1040ez Instructions 2011

1040ez instructions 2011 1. 1040ez instructions 2011   Nonresident Alien or Resident Alien? Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Nonresident Aliens Resident AliensGreen Card Test Substantial Presence Test Effect of Tax Treaties Dual-Status AliensFirst Year of Residency Choosing Resident Alien Status Last Year of Residency Nonresident Spouse Treated as a ResidentHow To Make the Choice Aliens From American Samoa or Puerto Rico Introduction You should first determine whether, for income tax purposes, you are a nonresident alien or a resident alien. 1040ez instructions 2011 If you are both a nonresident and resident in the same year, you have a dual status. 1040ez instructions 2011 Dual status is explained later. 1040ez instructions 2011 Also explained later are a choice to treat your nonresident spouse as a resident and some other special situations. 1040ez instructions 2011 Topics - This chapter discusses: How to determine if you are a nonresident, resident, or dual-status alien, and How to treat a nonresident spouse as a resident alien. 1040ez instructions 2011 Useful Items - You may want to see: Form (and Instructions) 1040 U. 1040ez instructions 2011 S. 1040ez instructions 2011 Individual Income Tax Return 1040A U. 1040ez instructions 2011 S. 1040ez instructions 2011 Individual Income Tax Return 1040NR U. 1040ez instructions 2011 S. 1040ez instructions 2011 Nonresident Alien Income Tax Return 8833 Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b) 8840 Closer Connection Exception Statement for Aliens 8843 Statement for Exempt Individuals and Individuals With a Medical Condition See chapter 12 for information about getting these forms. 1040ez instructions 2011 Nonresident Aliens If you are an alien (not a U. 1040ez instructions 2011 S. 1040ez instructions 2011 citizen), you are considered a nonresident alien unless you meet one of the two tests described next under Resident Aliens. 1040ez instructions 2011 Resident Aliens You are a resident alien of the United States for tax purposes if you meet either the green card test or the substantial presence test for calendar year 2013 (January 1–December 31). 1040ez instructions 2011 Even if you do not meet either of these tests, you may be able to choose to be treated as a U. 1040ez instructions 2011 S. 1040ez instructions 2011 resident for part of the year. 1040ez instructions 2011 See First-Year Choice under Dual-Status Aliens, later. 1040ez instructions 2011 Green Card Test You are a resident for tax purposes if you are a lawful permanent resident of the United States at any time during calendar year 2013. 1040ez instructions 2011 (However, see Dual-Status Aliens , later. 1040ez instructions 2011 ) This is known as the “green card” test. 1040ez instructions 2011 You are a lawful permanent resident of the United States at any time if you have been given the privilege, according to the immigration laws, of residing permanently in the United States as an immigrant. 1040ez instructions 2011 You generally have this status if the U. 1040ez instructions 2011 S. 1040ez instructions 2011 Citizenship and Immigration Services (USCIS) (or its predecessor organization) has issued you an alien registration card, also known as a “green card. 1040ez instructions 2011 ” You continue to have resident status under this test unless the status is taken away from you or is administratively or judicially determined to have been abandoned. 1040ez instructions 2011 Resident status taken away. 1040ez instructions 2011   Resident status is considered to have been taken away from you if the U. 1040ez instructions 2011 S. 1040ez instructions 2011 government issues you a final administrative or judicial order of exclusion or deportation. 1040ez instructions 2011 A final judicial order is an order that you may no longer appeal to a higher court of competent jurisdiction. 1040ez instructions 2011 Resident status abandoned. 1040ez instructions 2011   An administrative or judicial determination of abandonment of resident status may be initiated by you, the USCIS, or a U. 1040ez instructions 2011 S. 1040ez instructions 2011 consular officer. 1040ez instructions 2011    If you initiate the determination, your resident status is considered to be abandoned when you file either of the following with the USCIS or U. 1040ez instructions 2011 S. 1040ez instructions 2011 consular officer. 1040ez instructions 2011 Your application for abandonment. 1040ez instructions 2011 Your Alien Registration Receipt Card attached to a letter stating your intent to abandon your resident status. 1040ez instructions 2011 You must file the letter by certified mail, return receipt requested. 1040ez instructions 2011 You must keep a copy of the letter and proof that it was mailed and received. 1040ez instructions 2011    Until you have proof your letter was received, you remain a resident alien for tax purposes even if the USCIS would not recognize the validity of your green card because it is more than ten years old or because you have been absent from the United States for a period of time. 1040ez instructions 2011   If the USCIS or U. 1040ez instructions 2011 S. 1040ez instructions 2011 consular officer initiates this determination, your resident status will be considered to be abandoned when the final administrative order of abandonment is issued. 1040ez instructions 2011 If you are granted an appeal to a federal court of competent jurisdiction, a final judicial order is required. 1040ez instructions 2011   Under U. 1040ez instructions 2011 S. 1040ez instructions 2011 immigration law, a lawful permanent resident who is required to file a tax return as a resident and fails to do so may be regarded as having abandoned status and may lose permanent resident status. 1040ez instructions 2011    A long-term resident who ceases to be a lawful permanent resident may be subject to special reporting requirements and tax provisions. 1040ez instructions 2011 See Expatriation Tax in chapter 4. 1040ez instructions 2011 Termination of residency after June 3, 2004, and before June 17, 2008. 1040ez instructions 2011   If you terminated your residency after June 3, 2004, and before June 17, 2008, you will still be considered a U. 1040ez instructions 2011 S. 1040ez instructions 2011 resident for tax purposes until you notify the Secretary of Homeland Security and file Form 8854, Initial and Annual Expatriation Statement. 1040ez instructions 2011 Termination of residency after June 16, 2008. 1040ez instructions 2011   For information on your residency termination date, see Former long-term resident under Expatriation After June 16, 2008, in chapter 4. 1040ez instructions 2011 Substantial Presence Test You will be considered a U. 1040ez instructions 2011 S. 1040ez instructions 2011 resident for tax purposes if you meet the substantial presence test for calendar year 2013. 1040ez instructions 2011 To meet this test, you must be physically present in the United States on at least: 31 days during 2013, and 183 days during the 3-year period that includes 2013, 2012, and 2011, counting: All the days you were present in 2013, and 1/3 of the days you were present in 2012, and 1/6 of the days you were present in 2011. 1040ez instructions 2011 Example. 1040ez instructions 2011 You were physically present in the United States on 120 days in each of the years 2011, 2012, and 2013. 1040ez instructions 2011 To determine if you meet the substantial presence test for 2013, count the full 120 days of presence in 2013, 40 days in 2012 (1/3 of 120), and 20 days in 2011 (1/6 of 120). 1040ez instructions 2011 Because the total for the 3-year period is 180 days, you are not considered a resident under the substantial presence test for 2013. 1040ez instructions 2011 The term United States includes the following areas. 1040ez instructions 2011 All 50 states and the District of Columbia. 1040ez instructions 2011 The territorial waters of the United States. 1040ez instructions 2011 The seabed and subsoil of those submarine areas that are adjacent to U. 1040ez instructions 2011 S. 1040ez instructions 2011 territorial waters and over which the United States has exclusive rights under international law to explore and exploit natural resources. 1040ez instructions 2011 The term does not include U. 1040ez instructions 2011 S. 1040ez instructions 2011 possessions and territories or U. 1040ez instructions 2011 S. 1040ez instructions 2011 airspace. 1040ez instructions 2011 Days of Presence in the United States You are treated as present in the United States on any day you are physically present in the country at any time during the day. 1040ez instructions 2011 However, there are exceptions to this rule. 1040ez instructions 2011 Do not count the following as days of presence in the United States for the substantial presence test. 1040ez instructions 2011 Days you commute to work in the United States from a residence in Canada or Mexico if you regularly commute from Canada or Mexico. 1040ez instructions 2011 Days you are in the United States for less than 24 hours when you are in transit between two places outside the United States. 1040ez instructions 2011 Days you are in the United States as a crew member of a foreign vessel. 1040ez instructions 2011 Days you are unable to leave the United States because of a medical condition that arose while you are in the United States. 1040ez instructions 2011 Days you are an exempt individual. 1040ez instructions 2011 The specific rules that apply to each of these categories are discussed next. 1040ez instructions 2011 Regular commuters from Canada or Mexico. 1040ez instructions 2011   Do not count the days on which you commute to work in the United States from your residence in Canada or Mexico if you regularly commute from Canada or Mexico. 1040ez instructions 2011 You are considered to commute regularly if you commute to work in the United States on more than 75% of the workdays during your working period. 1040ez instructions 2011   For this purpose, “commute” means to travel to work and return to your residence within a 24-hour period. 1040ez instructions 2011 “Workdays” are the days on which you work in the United States or Canada or Mexico. 1040ez instructions 2011 “Working period” means the period beginning with the first day in the current year on which you are physically present in the United States to work and ending on the last day in the current year on which you are physically present in the United States to work. 1040ez instructions 2011 If your work requires you to be present in the United States only on a seasonal or cyclical basis, your working period begins on the first day of the season or cycle on which you are present in the United States to work and ends on the last day of the season or cycle on which you are present in the United States to work. 1040ez instructions 2011 You can have more than one working period in a calendar year, and your working period can begin in one calendar year and end in the following calendar year. 1040ez instructions 2011 Example. 1040ez instructions 2011 Maria Perez lives in Mexico and works for Compañía ABC in its office in Mexico. 1040ez instructions 2011 She was assigned to her firm's office in the United States from February 1 through June 1. 1040ez instructions 2011 On June 2, she resumed her employment in Mexico. 1040ez instructions 2011 On 69 days, Maria commuted each morning from her home in Mexico to work in Compañía ABC's U. 1040ez instructions 2011 S. 1040ez instructions 2011 office. 1040ez instructions 2011 She returned to her home in Mexico on each of those evenings. 1040ez instructions 2011 On 7 days, she worked in her firm's Mexico office. 1040ez instructions 2011 For purposes of the substantial presence test, Maria does not count the days she commuted to work in the United States because those days equal more than 75% of the workdays during the working period (69 workdays in the United States divided by 76 workdays in the working period equals 90. 1040ez instructions 2011 8%). 1040ez instructions 2011 Days in transit. 1040ez instructions 2011   Do not count the days you are in the United States for less than 24 hours and you are in transit between two places outside the United States. 1040ez instructions 2011 You are considered to be in transit if you engage in activities that are substantially related to completing travel to your foreign destination. 1040ez instructions 2011 For example, if you travel between airports in the United States to change planes en route to your foreign destination, you are considered to be in transit. 1040ez instructions 2011 However, you are not considered to be in transit if you attend a business meeting while in the United States. 1040ez instructions 2011 This is true even if the meeting is held at the airport. 1040ez instructions 2011 Crew members. 1040ez instructions 2011   Do not count the days you are temporarily present in the United States as a regular crew member of a foreign vessel (boat or ship) engaged in transportation between the United States and a foreign country or a U. 1040ez instructions 2011 S. 1040ez instructions 2011 possession. 1040ez instructions 2011 However, this exception does not apply if you otherwise engage in any trade or business in the United States on those days. 1040ez instructions 2011 Medical condition. 1040ez instructions 2011   Do not count the days you intended to leave, but could not leave the United States because of a medical condition or problem that arose while you were in the United States. 1040ez instructions 2011 Whether you intended to leave the United States on a particular day is determined based on all the facts and circumstances. 1040ez instructions 2011 For example, you may be able to establish that you intended to leave if your purpose for visiting the United States could be accomplished during a period that is not long enough to qualify you for the substantial presence test. 1040ez instructions 2011 However, if you need an extended period of time to accomplish the purpose of your visit and that period would qualify you for the substantial presence test, you would not be able to establish an intent to leave the United States before the end of that extended period. 1040ez instructions 2011   In the case of an individual who is judged mentally incompetent, proof of intent to leave the United States can be determined by analyzing the individual's pattern of behavior before he or she was judged mentally incompetent. 1040ez instructions 2011   If you qualify to exclude days of presence because of a medical condition, you must file a fully completed Form 8843 with the IRS. 1040ez instructions 2011 See Form 8843 , later. 1040ez instructions 2011   You cannot exclude any days of presence in the United States under the following circumstances. 1040ez instructions 2011 You were initially prevented from leaving, were then able to leave, but remained in the United States beyond a reasonable period for making arrangements to leave. 1040ez instructions 2011 You returned to the United States for treatment of a medical condition that arose during a prior stay. 1040ez instructions 2011 The condition existed before your arrival in the United States and you were aware of the condition. 1040ez instructions 2011 It does not matter whether you needed treatment for the condition when you entered the United States. 1040ez instructions 2011 Exempt individual. 1040ez instructions 2011   Do not count days for which you are an exempt individual. 1040ez instructions 2011 The term “exempt individual” does not refer to someone exempt from U. 1040ez instructions 2011 S. 1040ez instructions 2011 tax, but to anyone in the following categories. 1040ez instructions 2011 An individual temporarily present in the United States as a foreign government-related individual under an “A” or “G” visa. 1040ez instructions 2011 A teacher or trainee temporarily present in the United States under a “J” or “Q” visa, who substantially complies with the requirements of the visa. 1040ez instructions 2011 A student temporarily present in the United States under an “F,” “J,” “M,” or “Q” visa, who substantially complies with the requirements of the visa. 1040ez instructions 2011 A professional athlete temporarily in the United States to compete in a charitable sports event. 1040ez instructions 2011   The specific rules for each of these four categories (including any rules on the length of time you will be an exempt individual) are discussed next. 1040ez instructions 2011 Foreign government-related individuals. 1040ez instructions 2011   A foreign government-related individual is an individual (or a member of the individual's immediate family) who is temporarily present in the United States: As a full-time employee of an international organization, By reason of diplomatic status, or By reason of a visa (other than a visa that grants lawful permanent residence) that the Secretary of the Treasury determines represents full-time diplomatic or consular status. 1040ez instructions 2011 Note. 1040ez instructions 2011 You are considered temporarily present in the United States regardless of the actual amount of time you are present in the United States. 1040ez instructions 2011    An international organization is any public international organization that the President of the United States has designated by Executive Order as being entitled to the privileges, exemptions, and immunities provided for in the International Organizations Act. 1040ez instructions 2011 An individual is a full-time employee if his or her work schedule meets the organization's standard full-time work schedule. 1040ez instructions 2011   An individual is considered to have full-time diplomatic or consular status if he or she: Has been accredited by a foreign government that is recognized by the United States, Intends to engage primarily in official activities for that foreign government while in the United States, and Has been recognized by the President, Secretary of State, or a consular officer as being entitled to that status. 1040ez instructions 2011 Note. 1040ez instructions 2011 If you are present in the United States under an “A” or “G” visa you are considered a foreign government-related individual (with full-time diplomatic or consular status). 1040ez instructions 2011 None of your days count for purposes of the substantial presence test. 1040ez instructions 2011   Members of the immediate family include the individual's spouse and unmarried children (whether by blood or adoption) but only if the spouse's or unmarried children's visa statuses are derived from and dependent on the exempt individual's visa classification. 1040ez instructions 2011 Unmarried children are included only if they: Are under 21 years of age, Reside regularly in the exempt individual's household, and Are not members of another household. 1040ez instructions 2011 Teachers and trainees. 1040ez instructions 2011   A teacher or trainee is an individual, other than a student, who is temporarily in the United States under a “J” or “Q” visa and substantially complies with the requirements of that visa. 1040ez instructions 2011 You are considered to have substantially complied with the visa requirements if you have not engaged in activities that are prohibited by U. 1040ez instructions 2011 S. 1040ez instructions 2011 immigration laws and could result in the loss of your visa status. 1040ez instructions 2011   Also included are immediate family members of exempt teachers and trainees. 1040ez instructions 2011 See the definition of immediate family, earlier, under Foreign government-related individuals . 1040ez instructions 2011   You will not be an exempt individual as a teacher or trainee in 2013 if you were exempt as a teacher, trainee, or student for any part of 2 of the 6 preceding calendar years. 1040ez instructions 2011 However, you will be an exempt individual if all of the following conditions are met. 1040ez instructions 2011 You were exempt as a teacher, trainee, or student for any part of 3 (or fewer) of the 6 preceding calendar years, A foreign employer paid all of your compensation during 2013, and A foreign employer paid all of your compensation during each of the preceding 6 years you were present in the United States as a teacher or trainee. 1040ez instructions 2011 A foreign employer includes an office or place of business of an American entity in a foreign country or a U. 1040ez instructions 2011 S. 1040ez instructions 2011 possession. 1040ez instructions 2011   If you qualify to exclude days of presence as a teacher or trainee, you must file a fully completed Form 8843 with the IRS. 1040ez instructions 2011 See Form 8843 , later. 1040ez instructions 2011 Example. 1040ez instructions 2011 Carla was temporarily in the United States during the year as a teacher on a “J” visa. 1040ez instructions 2011 Her compensation for the year was paid by a foreign employer. 1040ez instructions 2011 Carla was treated as an exempt teacher for the previous 2 years but her compensation was not paid by a foreign employer. 1040ez instructions 2011 She will not be considered an exempt individual for the current year because she was exempt as a teacher for at least 2 of the past 6 years. 1040ez instructions 2011 If her compensation for the past 2 years had been paid by a foreign employer, she would be an exempt individual for the current year. 1040ez instructions 2011 Students. 1040ez instructions 2011   A student is any individual who is temporarily in the United States on an “F,” “J,” “M,” or “Q” visa and who substantially complies with the requirements of that visa. 1040ez instructions 2011 You are considered to have substantially complied with the visa requirements if you have not engaged in activities that are prohibited by U. 1040ez instructions 2011 S. 1040ez instructions 2011 immigration laws and could result in the loss of your visa status. 1040ez instructions 2011   Also included are immediate family members of exempt students. 1040ez instructions 2011 See the definition of immediate family, earlier, under Foreign government-related individuals . 1040ez instructions 2011   You will not be an exempt individual as a student in 2013 if you have been exempt as a teacher, trainee, or student for any part of more than 5 calendar years unless you meet both of the following requirements. 1040ez instructions 2011 You establish that you do not intend to reside permanently in the United States. 1040ez instructions 2011 You have substantially complied with the requirements of your visa. 1040ez instructions 2011 The facts and circumstances to be considered in determining if you have demonstrated an intent to reside permanently in the United States include, but are not limited to, the following. 1040ez instructions 2011 Whether you have maintained a closer connection to a foreign country (discussed later). 1040ez instructions 2011 Whether you have taken affirmative steps to change your status from nonimmigrant to lawful permanent resident as discussed later under Closer Connection to a Foreign Country . 1040ez instructions 2011   If you qualify to exclude days of presence as a student, you must file a fully completed Form 8843 with the IRS. 1040ez instructions 2011 See Form 8843 , later. 1040ez instructions 2011 Professional athletes. 1040ez instructions 2011   A professional athlete who is temporarily in the United States to compete in a charitable sports event is an exempt individual. 1040ez instructions 2011 A charitable sports event is one that meets the following conditions. 1040ez instructions 2011 The main purpose is to benefit a qualified charitable organization. 1040ez instructions 2011 The entire net proceeds go to charity. 1040ez instructions 2011 Volunteers perform substantially all the work. 1040ez instructions 2011   In figuring the days of presence in the United States, you can exclude only the days on which you actually competed in a sports event. 1040ez instructions 2011 You cannot exclude the days on which you were in the United States to practice for the event, to perform promotional or other activities related to the event, or to travel between events. 1040ez instructions 2011   If you qualify to exclude days of presence as a professional athlete, you must file a fully completed Form 8843 with the IRS. 1040ez instructions 2011 See Form 8843 , next. 1040ez instructions 2011 Form 8843. 1040ez instructions 2011   If you exclude days of presence in the United States because you fall into any of the following categories, you must file a fully completed Form 8843. 1040ez instructions 2011 You were unable to leave the United States as planned because of a medical condition or problem. 1040ez instructions 2011 You were temporarily in the United States as a teacher or trainee on a “J” or “Q” visa. 1040ez instructions 2011 You were temporarily in the United States as a student on an “F,” “J,” “M,” or “Q” visa. 1040ez instructions 2011 You were a professional athlete competing in a charitable sports event. 1040ez instructions 2011 Attach Form 8843 to your 2013 income tax return. 1040ez instructions 2011 If you do not have to file a return, send Form 8843 to the Department of the Treasury, Internal Revenue Service Center, Austin, TX 73301-0215, by the due date for filing Form 1040NR or Form 1040NR-EZ. 1040ez instructions 2011 The due date for filing is discussed in chapter 7. 1040ez instructions 2011 If you do not timely file Form 8843, you cannot exclude the days you were present in the United States as a professional athlete or because of a medical condition that arose while you were in the United States. 1040ez instructions 2011 This does not apply if you can show by clear and convincing evidence that you took reasonable actions to become aware of the filing requirements and significant steps to comply with those requirements. 1040ez instructions 2011 Closer Connection to a Foreign Country Even if you meet the substantial presence test, you can be treated as a nonresident alien if you: Are present in the United States for less than 183 days during the year, Maintain a tax home in a foreign country during the year, and Have a closer connection during the year to one foreign country in which you have a tax home than to the United States (unless you have a closer connection to two foreign countries, discussed next). 1040ez instructions 2011 Closer connection to two foreign countries. 1040ez instructions 2011   You can demonstrate that you have a closer connection to two foreign countries (but not more than two) if you meet all of the following conditions. 1040ez instructions 2011 You maintained a tax home beginning on the first day of the year in one foreign country. 1040ez instructions 2011 You changed your tax home during the year to a second foreign country. 1040ez instructions 2011 You continued to maintain your tax home in the second foreign country for the rest of the year. 1040ez instructions 2011 You had a closer connection to each foreign country than to the United States for the period during which you maintained a tax home in that foreign country. 1040ez instructions 2011 You are subject to tax as a resident under the tax laws of either foreign country for the entire year or subject to tax as a resident in both foreign countries for the period during which you maintained a tax home in each foreign country. 1040ez instructions 2011 Tax home. 1040ez instructions 2011   Your tax home is the general area of your main place of business, employment, or post of duty, regardless of where you maintain your family home. 1040ez instructions 2011 Your tax home is the place where you permanently or indefinitely work as an employee or a self-employed individual. 1040ez instructions 2011 If you do not have a regular or main place of business because of the nature of your work, then your tax home is the place where you regularly live. 1040ez instructions 2011 If you do not fit either of these categories, you are considered an itinerant and your tax home is wherever you work. 1040ez instructions 2011   For determining whether you have a closer connection to a foreign country, your tax home must also be in existence for the entire current year, and must be located in the same foreign country to which you are claiming to have a closer connection. 1040ez instructions 2011 Foreign country. 1040ez instructions 2011   In determining whether you have a closer connection to a foreign country, the term “foreign country” means: Any territory under the sovereignty of the United Nations or a government other than that of the United States, The territorial waters of the foreign country (determined under U. 1040ez instructions 2011 S. 1040ez instructions 2011 law), The seabed and subsoil of those submarine areas which are adjacent to the territorial waters of the foreign country and over which the foreign country has exclusive rights under international law to explore and exploit natural resources, and Possessions and territories of the United States. 1040ez instructions 2011 Establishing a closer connection. 1040ez instructions 2011   You will be considered to have a closer connection to a foreign country than the United States if you or the IRS establishes that you have maintained more significant contacts with the foreign country than with the United States. 1040ez instructions 2011 In determining whether you have maintained more significant contacts with the foreign country than with the United States, the facts and circumstances to be considered include, but are not limited to, the following. 1040ez instructions 2011 The country of residence you designate on forms and documents. 1040ez instructions 2011 The types of official forms and documents you file, such as Form W-9, Form W-8BEN, or Form W-8ECI. 1040ez instructions 2011 The location of: Your permanent home, Your family, Your personal belongings, such as cars, furniture, clothing, and jewelry, Your current social, political, cultural, professional, or religious affiliations, Your business activities (other than those that constitute your tax home), The jurisdiction in which you hold a driver's license, The jurisdiction in which you vote, and Charitable organizations to which you contribute. 1040ez instructions 2011 It does not matter whether your permanent home is a house, an apartment, or a furnished room. 1040ez instructions 2011 It also does not matter whether you rent or own it. 1040ez instructions 2011 It is important, however, that your home be available at all times, continuously, and not solely for short stays. 1040ez instructions 2011 When you cannot have a closer connection. 1040ez instructions 2011   You cannot claim you have a closer connection to a foreign country if either of the following applies: You personally applied, or took other steps during the year, to change your status to that of a permanent resident, or You had an application pending for adjustment of status during the current year. 1040ez instructions 2011 Steps to change your status to that of a permanent resident include, but are not limited to, the filing of the following forms. 1040ez instructions 2011 Form I-508, Waiver of Rights, Privileges, Exemptions and Immunities Form I-485, Application to Register Permanent Residence or Adjust Status Form I-130, Petition for Alien Relative, on your behalf Form I-140, Immigrant Petition for Alien Worker, on your behalf Form ETA-750, Application for Alien Employment Certification, on your behalf Form DS-230, Application for Immigrant Visa and Alien Registration Form 8840. 1040ez instructions 2011   You must attach a fully completed Form 8840 to your income tax return to claim you have a closer connection to a foreign country or countries. 1040ez instructions 2011   If you do not have to file a return, send the form to the Department of the Treasury, Internal Revenue Service Center, Austin, TX 73301-0215, by the due date for filing Form 1040NR or Form 1040NR-EZ. 1040ez instructions 2011 The due date for filing is discussed later in chapter 7. 1040ez instructions 2011   If you do not timely file Form 8840, you cannot claim a closer connection to a foreign country or countries. 1040ez instructions 2011 This does not apply if you can show by clear and convincing evidence that you took reasonable actions to become aware of the filing requirements and significant steps to comply with those requirements. 1040ez instructions 2011 Effect of Tax Treaties The rules given here to determine if you are a U. 1040ez instructions 2011 S. 1040ez instructions 2011 resident do not override tax treaty definitions of residency. 1040ez instructions 2011 If you are a dual-resident taxpayer, you can still claim the benefits under an income tax treaty. 1040ez instructions 2011 A dual-resident taxpayer is one who is a resident of both the United States and another country under each country's tax laws. 1040ez instructions 2011 The income tax treaty between the two countries must contain a provision that provides for resolution of conflicting claims of residence (tie-breaker rule). 1040ez instructions 2011 If you are treated as a resident of a foreign country under a tax treaty, you are treated as a nonresident alien in figuring your U. 1040ez instructions 2011 S. 1040ez instructions 2011 income tax. 1040ez instructions 2011 For purposes other than figuring your tax, you will be treated as a U. 1040ez instructions 2011 S. 1040ez instructions 2011 resident. 1040ez instructions 2011 For example, the rules discussed here do not affect your residency time periods as discussed later under Dual-Status Aliens . 1040ez instructions 2011 Information to be reported. 1040ez instructions 2011   If you are a dual-resident taxpayer and you claim treaty benefits, you must file a return by the due date (including extensions) using Form 1040NR or Form 1040NR-EZ, and compute your tax as a nonresident alien. 1040ez instructions 2011 You must also attach a fully completed Form 8833 if you determine your residency under a tax treaty and receive payments or income items totaling more than $100,000. 1040ez instructions 2011 You may also have to attach Form 8938 (discussed in chapter 7). 1040ez instructions 2011 See Reporting Treaty Benefits Claimed in chapter 9 for more information on reporting treaty benefits. 1040ez instructions 2011 Dual-Status Aliens You can be both a nonresident alien and a resident alien during the same tax year. 1040ez instructions 2011 This usually occurs in the year you arrive in or depart from the United States. 1040ez instructions 2011 Aliens who have dual status should see chapter 6 for information on filing a return for a dual-status tax year. 1040ez instructions 2011 First Year of Residency If you are a U. 1040ez instructions 2011 S. 1040ez instructions 2011 resident for the calendar year, but you were not a U. 1040ez instructions 2011 S. 1040ez instructions 2011 resident at any time during the preceding calendar year, you are a U. 1040ez instructions 2011 S. 1040ez instructions 2011 resident only for the part of the calendar year that begins on the residency starting date. 1040ez instructions 2011 You are a nonresident alien for the part of the year before that date. 1040ez instructions 2011 Residency starting date under substantial presence test. 1040ez instructions 2011   If you meet the substantial presence test for a calendar year, your residency starting date is generally the first day you are present in the United States during that calendar year. 1040ez instructions 2011 However, you do not have to count up to 10 days of actual presence in the United States if on those days you establish that: You had a closer connection to a foreign country than to the United States, and Your tax home was in that foreign country. 1040ez instructions 2011 See Closer Connection to a Foreign Country , earlier. 1040ez instructions 2011   In determining whether you can exclude up to 10 days, the following rules apply. 1040ez instructions 2011 You can exclude days from more than one period of presence as long as the total days in all periods are not more than 10. 1040ez instructions 2011 You cannot exclude any days in a period of consecutive days of presence if all the days in that period cannot be excluded. 1040ez instructions 2011 Although you can exclude up to 10 days of presence in determining your residency starting date, you must include those days when determining whether you meet the substantial presence test. 1040ez instructions 2011 Example. 1040ez instructions 2011 Ivan Ivanovich is a citizen of Russia. 1040ez instructions 2011 He came to the United States for the first time on January 6, 2013, to attend a business meeting and returned to Russia on January 10, 2013. 1040ez instructions 2011 His tax home remained in Russia. 1040ez instructions 2011 On March 1, 2013, he moved to the United States and resided here for the rest of the year. 1040ez instructions 2011 Ivan is able to establish a closer connection to Russia for the period January 6–10. 1040ez instructions 2011 Thus, his residency starting date is March 1. 1040ez instructions 2011 Statement required to exclude up to 10 days of presence. 1040ez instructions 2011   You must file a statement with the IRS if you are excluding up to 10 days of presence in the United States for purposes of your residency starting date. 1040ez instructions 2011 You must sign and date this statement and include a declaration that it is made under penalties of perjury. 1040ez instructions 2011 The statement must contain the following information (as applicable). 1040ez instructions 2011 Your name, address, U. 1040ez instructions 2011 S. 1040ez instructions 2011 taxpayer identification number (if any), and U. 1040ez instructions 2011 S. 1040ez instructions 2011 visa number (if any). 1040ez instructions 2011 Your passport number and the name of the country that issued your passport. 1040ez instructions 2011 The tax year for which the statement applies. 1040ez instructions 2011 The first day that you were present in the United States during the year. 1040ez instructions 2011 The dates of the days you are excluding in figuring your first day of residency. 1040ez instructions 2011 Sufficient facts to establish that you have maintained your tax home in and a closer connection to a foreign country during the period you are excluding. 1040ez instructions 2011   Attach the required statement to your income tax return. 1040ez instructions 2011 If you are not required to file a return, send the statement to the Department of the Treasury, Internal Revenue Service Center, Austin, TX 73301-0215, on or before the due date for filing Form 1040NR or Form 1040NR-EZ. 1040ez instructions 2011 The due date for filing is discussed in chapter 7. 1040ez instructions 2011   If you do not file the required statement as explained above, you cannot claim that you have a closer connection to a foreign country or countries. 1040ez instructions 2011 Therefore, your first day of residency will be the first day you are present in the United States. 1040ez instructions 2011 This does not apply if you can show by clear and convincing evidence that you took reasonable actions to become aware of the requirements for filing the statement and significant steps to comply with those requirements. 1040ez instructions 2011 Residency starting date under green card test. 1040ez instructions 2011   If you meet the green card test at any time during a calendar year, but do not meet the substantial presence test for that year, your residency starting date is the first day in the calendar year on which you are present in the United States as a lawful permanent resident. 1040ez instructions 2011   If you meet both the substantial presence test and the green card test, your residency starting date is the earlier of the first day during the year you are present in the United States under the substantial presence test or as a lawful permanent resident. 1040ez instructions 2011 Residency during the preceding year. 1040ez instructions 2011   If you were a U. 1040ez instructions 2011 S. 1040ez instructions 2011 resident during any part of the preceding calendar year and you are a U. 1040ez instructions 2011 S. 1040ez instructions 2011 resident for any part of the current year, you will be considered a U. 1040ez instructions 2011 S. 1040ez instructions 2011 resident at the beginning of the current year. 1040ez instructions 2011 This applies whether you are a resident under the substantial presence test or green card test. 1040ez instructions 2011 Example. 1040ez instructions 2011 Robert Bach is a citizen of Switzerland. 1040ez instructions 2011 He came to the United States as a U. 1040ez instructions 2011 S. 1040ez instructions 2011 resident for the first time on May 1, 2012, and remained until November 5, 2012, when he returned to Switzerland. 1040ez instructions 2011 Robert came back to the United States on March 5, 2013, as a lawful permanent resident and still resides here. 1040ez instructions 2011 In calendar year 2013, Robert's U. 1040ez instructions 2011 S. 1040ez instructions 2011 residency is deemed to begin on January 1, 2013, because he qualified as a resident in calendar year 2012. 1040ez instructions 2011 First-Year Choice If you do not meet either the green card test or the substantial presence test for 2012 or 2013 and you did not choose to be treated as a resident for part of 2012, but you meet the substantial presence test for 2014, you can choose to be treated as a U. 1040ez instructions 2011 S. 1040ez instructions 2011 resident for part of 2013. 1040ez instructions 2011 To make this choice, you must: Be present in the United States for at least 31 days in a row in 2013, and Be present in the United States for at least 75% of the number of days beginning with the first day of the 31-day period and ending with the last day of 2013. 1040ez instructions 2011 For purposes of this 75% requirement, you can treat up to 5 days of absence from the United States as days of presence in the United States. 1040ez instructions 2011 When counting the days of presence in (1) and (2) above, do not count the days you were in the United States under any of the exceptions discussed earlier under Days of Presence in the United States. 1040ez instructions 2011 If you make the first-year choice, your residency starting date for 2013 is the first day of the earliest 31-day period (described in (1) above) that you use to qualify for the choice. 1040ez instructions 2011 You are treated as a U. 1040ez instructions 2011 S. 1040ez instructions 2011 resident for the rest of the year. 1040ez instructions 2011 If you are present for more than one 31-day period and you satisfy condition (2) above for each of those periods, your residency starting date is the first day of the first 31-day period. 1040ez instructions 2011 If you are present for more than one 31-day period but you satisfy condition (2) above only for a later 31-day period, your residency starting date is the first day of the later 31-day period. 1040ez instructions 2011 Note. 1040ez instructions 2011 You do not have to be married to make this choice. 1040ez instructions 2011 Example 1. 1040ez instructions 2011 Juan DaSilva is a citizen of the Philippines. 1040ez instructions 2011 He came to the United States for the first time on November 1, 2013, and was here on 31 consecutive days (from November 1 through December 1, 2013). 1040ez instructions 2011 Juan returned to the Philippines on December 1 and came back to the United States on December 17, 2013. 1040ez instructions 2011 He stayed in the United States for the rest of the year. 1040ez instructions 2011 During 2014, Juan was a resident of the United States under the substantial presence test. 1040ez instructions 2011 Juan can make the first-year choice for 2013 because he was in the United States in 2013 for a period of 31 days in a row (November 1 through December 1) and for at least 75% of the days following (and including) the first day of his 31-day period (46 total days of presence in the United States divided by 61 days in the period from November 1 through December 31 equals 75. 1040ez instructions 2011 4%). 1040ez instructions 2011 If Juan makes the first-year choice, his residency starting date will be November 1, 2013. 1040ez instructions 2011 Example 2. 1040ez instructions 2011 The facts are the same as in Example 1, except that Juan was also absent from the United States on December 24, 25, 29, 30, and 31. 1040ez instructions 2011 He can make the first-year choice for 2013 because up to 5 days of absence are considered days of presence for purposes of the 75% requirement. 1040ez instructions 2011 Statement required to make the first-year choice for 2013. 1040ez instructions 2011   You must attach a statement to Form 1040 to make the first-year choice for 2013. 1040ez instructions 2011 The statement must contain your name and address and specify the following. 1040ez instructions 2011 That you are making the first-year choice for 2013. 1040ez instructions 2011 That you were not a resident in 2012. 1040ez instructions 2011 That you are a resident under the substantial presence test in 2014. 1040ez instructions 2011 The number of days of presence in the United States during 2014. 1040ez instructions 2011 The date or dates of your 31-day period of presence and the period of continuous presence in the United States during 2013. 1040ez instructions 2011 The date or dates of absence from the United States during 2013 that you are treating as days of presence. 1040ez instructions 2011 You cannot file Form 1040 or the statement until you meet the substantial presence test for 2014. 1040ez instructions 2011 If you have not met the test for 2014 as of April 15, 2014, you can request an extension of time for filing your 2013 Form 1040 until a reasonable period after you have met that test. 1040ez instructions 2011 To request an extension to file until October 15, 2014, use Form 4868, Application for Automatic Extension of Time To File U. 1040ez instructions 2011 S. 1040ez instructions 2011 Individual Income Tax Return. 1040ez instructions 2011 You can file the paper form or use one of the electronic filing options explained in the Form 4868 instructions. 1040ez instructions 2011 You should pay with this extension the amount of tax you expect to owe for 2013 figured as if you were a nonresident alien the entire year. 1040ez instructions 2011 You can use Form 1040NR or Form 1040NR-EZ to figure the tax. 1040ez instructions 2011 Enter the tax on Form 4868. 1040ez instructions 2011 If you do not pay the tax due, you will be charged interest on any tax not paid by the regular due date of your return, and you may be charged a penalty on the late payment. 1040ez instructions 2011   Once you make the first-year choice, you may not revoke it without the approval of the Internal Revenue Service. 1040ez instructions 2011   If you do not follow the procedures discussed here for making the first-year choice, you will be treated as a nonresident alien for all of 2013. 1040ez instructions 2011 However, this does not apply if you can show by clear and convincing evidence that you took reasonable actions to become aware of the filing procedures and significant steps to comply with the procedures. 1040ez instructions 2011 Choosing Resident Alien Status If you are a dual-status alien, you can choose to be treated as a U. 1040ez instructions 2011 S. 1040ez instructions 2011 resident for the entire year if all of the following apply. 1040ez instructions 2011 You were a nonresident alien at the beginning of the year. 1040ez instructions 2011 You are a resident alien or U. 1040ez instructions 2011 S. 1040ez instructions 2011 citizen at the end of the year. 1040ez instructions 2011 You are married to a U. 1040ez instructions 2011 S. 1040ez instructions 2011 citizen or resident alien at the end of the year. 1040ez instructions 2011 Your spouse joins you in making the choice. 1040ez instructions 2011 This includes situations in which both you and your spouse were nonresident aliens at the beginning of the tax year and both of you are resident aliens at the end of the tax year. 1040ez instructions 2011 Note. 1040ez instructions 2011 If you are single at the end of the year, you cannot make this choice. 1040ez instructions 2011 If you make this choice, the following rules apply. 1040ez instructions 2011 You and your spouse are treated as U. 1040ez instructions 2011 S. 1040ez instructions 2011 residents for the entire year for income tax purposes. 1040ez instructions 2011 You and your spouse are taxed on worldwide income. 1040ez instructions 2011 You and your spouse must file a joint return for the year of the choice. 1040ez instructions 2011 Neither you nor your spouse can make this choice for any later tax year, even if you are separated, divorced, or remarried. 1040ez instructions 2011 The special instructions and restrictions for dual-status taxpayers in chapter 6 do not apply to you. 1040ez instructions 2011 Note. 1040ez instructions 2011 A similar choice is available if, at the end of the tax year, one spouse is a nonresident alien and the other spouse is a U. 1040ez instructions 2011 S. 1040ez instructions 2011 citizen or resident. 1040ez instructions 2011 See Nonresident Spouse Treated as a Resident , later. 1040ez instructions 2011 If you previously made that choice and it is still in effect, you do not need to make the choice explained here. 1040ez instructions 2011 Making the choice. 1040ez instructions 2011   You should attach a statement signed by both spouses to your joint return for the year of the choice. 1040ez instructions 2011 The statement must contain the following information. 1040ez instructions 2011 A declaration that you both qualify to make the choice and that you choose to be treated as U. 1040ez instructions 2011 S. 1040ez instructions 2011 residents for the entire tax year. 1040ez instructions 2011 The name, address, and taxpayer identification number (SSN or ITIN) of each spouse. 1040ez instructions 2011 (If one spouse died, include the name and address of the person who makes the choice for the deceased spouse. 1040ez instructions 2011 )   You generally make this choice when you file your joint return. 1040ez instructions 2011 However, you also can make the choice by filing Form 1040X, Amended U. 1040ez instructions 2011 S. 1040ez instructions 2011 Individual Income Tax Return. 1040ez instructions 2011 Attach Form 1040, Form 1040A, or Form 1040EZ and print “Amended” across the top of the corrected return. 1040ez instructions 2011 If you make the choice with an amended return, you and your spouse must also amend any returns that you may have filed after the year for which you made the choice. 1040ez instructions 2011   You generally must file the amended joint return within 3 years from the date you filed your original U. 1040ez instructions 2011 S. 1040ez instructions 2011 income tax return or 2 years from the date you paid your income tax for that year, whichever is later. 1040ez instructions 2011 Last Year of Residency If you were a U. 1040ez instructions 2011 S. 1040ez instructions 2011 resident in 2013 but are not a U. 1040ez instructions 2011 S. 1040ez instructions 2011 resident during any part of 2014, you cease to be a U. 1040ez instructions 2011 S. 1040ez instructions 2011 resident on your residency termination date. 1040ez instructions 2011 Your residency termination date is December 31, 2013, unless you qualify for an earlier date as discussed next. 1040ez instructions 2011 Earlier residency termination date. 1040ez instructions 2011   You may qualify for a residency termination date that is earlier than December 31. 1040ez instructions 2011 This date is: The last day in 2013 that you are physically present in the United States, if you met the substantial presence test, The first day in 2013 that you are no longer a lawful permanent resident of the United States, if you met the green card test, or The later of (1) or (2), if you met both tests. 1040ez instructions 2011 You can use this date only if, for the remainder of 2013, your tax home was in a foreign country and you had a closer connection to that foreign country. 1040ez instructions 2011 See Closer Connection to a Foreign Country , earlier. 1040ez instructions 2011    A long-term resident who ceases to be a lawful permanent resident may be subject to special reporting requirements and tax provisions. 1040ez instructions 2011 See Expatriation Tax in chapter 4. 1040ez instructions 2011 Termination of residency. 1040ez instructions 2011   For information on your residency termination date, see Former long-term resident under Expatriation After June 16, 2008, in chapter 4. 1040ez instructions 2011 De minimis presence. 1040ez instructions 2011   If you are a U. 1040ez instructions 2011 S. 1040ez instructions 2011 resident because of the substantial presence test and you qualify to use the earlier residency termination date, you can exclude up to 10 days of actual presence in the United States in determining your residency termination date. 1040ez instructions 2011 In determining whether you can exclude up to 10 days, the following rules apply. 1040ez instructions 2011 You can exclude days from more than one period of presence as long as the total days in all periods are not more than 10. 1040ez instructions 2011 You cannot exclude any days in a period of consecutive days of presence if all the days in that period cannot be excluded. 1040ez instructions 2011 Although you can exclude up to 10 days of presence in determining your residency termination date, you must include those days when determining whether you meet the substantial presence test. 1040ez instructions 2011 Example. 1040ez instructions 2011 Lola Bovary is a citizen of Malta. 1040ez instructions 2011 She came to the United States for the first time on March 1, 2013, and resided here until August 25, 2013. 1040ez instructions 2011 On December 12, 2013, Lola came to the United States for vacation and stayed here until December 16, 2013, when she returned to Malta. 1040ez instructions 2011 She is able to establish a closer connection to Malta for the period December 12–16. 1040ez instructions 2011 Lola is not a U. 1040ez instructions 2011 S. 1040ez instructions 2011 resident for tax purposes during 2014 and can establish a closer connection to Malta for the rest of calendar year 2013. 1040ez instructions 2011 Lola is a U. 1040ez instructions 2011 S. 1040ez instructions 2011 resident under the substantial presence test for 2013 because she was present in the United States for 183 days (178 days for the period March 1 to August 25 plus 5 days in December). 1040ez instructions 2011 Lola's residency termination date is August 25, 2013. 1040ez instructions 2011 Residency during the next year. 1040ez instructions 2011   If you are a U. 1040ez instructions 2011 S. 1040ez instructions 2011 resident during any part of 2014 and you are a resident during any part of 2013, you will be treated as a resident through the end of 2013. 1040ez instructions 2011 This applies whether you have a closer connection to a foreign country than the United States during 2013, and whether you are a resident under the substantial presence test or green card test. 1040ez instructions 2011 Statement required to establish your residency termination date. 1040ez instructions 2011   You must file a statement with the IRS to establish your residency termination date. 1040ez instructions 2011 You must sign and date this statement and include a declaration that it is made under penalties of perjury. 1040ez instructions 2011 The statement must contain the following information (as applicable). 1040ez instructions 2011 Your name, address, U. 1040ez instructions 2011 S. 1040ez instructions 2011 taxpayer identification number (if any), and U. 1040ez instructions 2011 S. 1040ez instructions 2011 visa number (if any). 1040ez instructions 2011 Your passport number and the name of the country that issued your passport. 1040ez instructions 2011 The tax year for which the statement applies. 1040ez instructions 2011 The last day that you were present in the United States during the year. 1040ez instructions 2011 Sufficient facts to establish that you have maintained your tax home in, and that you have a closer connection to, a foreign country following your last day of presence in the United States during the year or following the abandonment or rescission of your status as a lawful permanent resident during the year. 1040ez instructions 2011 The date that your status as a lawful permanent resident was abandoned or rescinded. 1040ez instructions 2011 Sufficient facts (including copies of relevant documents) to establish that your status as a lawful permanent resident has been abandoned or rescinded. 1040ez instructions 2011 If you can exclude days under the de minimis presence rule, discussed earlier, include the dates of the days you are excluding and sufficient facts to establish that you have maintained your tax home in and that you have a closer connection to a foreign country during the period you are excluding. 1040ez instructions 2011   Attach the required statement to your income tax return. 1040ez instructions 2011 If you are not required to file a return, send the statement to the Department of the Treasury, Internal Revenue Service Center, Austin, TX 73301-0215, on or before the due date for filing Form 1040NR or Form 1040NR-EZ. 1040ez instructions 2011 The due date for filing is discussed in chapter 7. 1040ez instructions 2011   If you do not file the required statement as explained above, you cannot claim that you have a closer connection to a foreign country or countries. 1040ez instructions 2011 This does not apply if you can show by clear and convincing evidence that you took reasonable actions to become aware of the requirements for filing the statement and significant steps to comply with those requirements. 1040ez instructions 2011 Nonresident Spouse Treated as a Resident If, at the end of your tax year, you are married and one spouse is a U. 1040ez instructions 2011 S. 1040ez instructions 2011 citizen or a resident alien and the other spouse is a nonresident alien, you can choose to treat the nonresident spouse as a U. 1040ez instructions 2011 S. 1040ez instructions 2011 resident. 1040ez instructions 2011 This includes situations in which one spouse is a nonresident alien at the beginning of the tax year, but a resident alien at the end of the year, and the other spouse is a nonresident alien at the end of the year. 1040ez instructions 2011 If you make this choice, you and your spouse are treated for income tax purposes as residents for your entire tax year. 1040ez instructions 2011 Neither you nor your spouse can claim under any tax treaty not to be a U. 1040ez instructions 2011 S. 1040ez instructions 2011 resident. 1040ez instructions 2011 You are both taxed on worldwide income. 1040ez instructions 2011 You must file a joint income tax return for the year you make the choice, but you and your spouse can file joint or separate returns in later years. 1040ez instructions 2011 If you file a joint return under this provision, the special instructions and restrictions for dual-status taxpayers in chapter 6 do not apply to you. 1040ez instructions 2011 Example. 1040ez instructions 2011 Bob and Sharon Williams are married and both are nonresident aliens at the beginning of the year. 1040ez instructions 2011 In June, Bob became a resident alien and remained a resident for the rest of the year. 1040ez instructions 2011 Bob and Sharon both choose to be treated as resident aliens by attaching a statement to their joint return. 1040ez instructions 2011 Bob and Sharon must file a joint return for the year they make the choice, but they can file either joint or separate returns for later years. 1040ez instructions 2011 How To Make the Choice Attach a statement, signed by both spouses, to your joint return for the first tax year for which the choice applies. 1040ez instructions 2011 It should contain the following information. 1040ez instructions 2011 A declaration that one spouse was a nonresident alien and the other spouse a U. 1040ez instructions 2011 S. 1040ez instructions 2011 citizen or resident alien on the last day of your tax year, and that you choose to be treated as U. 1040ez instructions 2011 S. 1040ez instructions 2011 residents for the entire tax year. 1040ez instructions 2011 The name, address, and identification number of each spouse. 1040ez instructions 2011 (If one spouse died, include the name and address of the person making the choice for the deceased spouse. 1040ez instructions 2011 ) Amended return. 1040ez instructions 2011   You generally make this choice when you file your joint return. 1040ez instructions 2011 However, you can also make the choice by filing a joint amended return on Form 1040X. 1040ez instructions 2011 Attach Form 1040, Form 1040A, or Form 1040EZ and print “Amended” across the top of the corrected return. 1040ez instructions 2011 If you make the choice with an amended return, you and your spouse must also amend any returns that you may have filed after the year for which you made the choice. 1040ez instructions 2011   You generally must file the amended joint return within 3 years from the date you filed your original U. 1040ez instructions 2011 S. 1040ez instructions 2011 income tax return or 2 years from the date you paid your income tax for that year, whichever is later. 1040ez instructions 2011 Suspending the Choice The choice to be treated as a resident alien is suspended for any tax year (after the tax year you made the choice) if neither spouse is a U. 1040ez instructions 2011 S. 1040ez instructions 2011 citizen or resident alien at any time during the tax year. 1040ez instructions 2011 This means each spouse must file a separate return as a nonresident alien for that year if either meets the filing requirements for nonresident aliens discussed in chapter 7. 1040ez instructions 2011 Example. 1040ez instructions 2011 Dick Brown was a resident alien on December 31, 2010, and married to Judy, a nonresident alien. 1040ez instructions 2011 They chose to treat Judy as a resident alien and filed joint 2010 and 2011 income tax returns. 1040ez instructions 2011 On January 10, 2012, Dick became a nonresident alien. 1040ez instructions 2011 Judy had remained a nonresident alien throughout the period. 1040ez instructions 2011 Dick and Judy could have filed joint or separate returns for 2012 because Dick was a resident alien for part of that year. 1040ez instructions 2011 However, because neither Dick nor Judy is a resident alien at any time during 2013, their choice is suspended for that year. 1040ez instructions 2011 If either meets the filing requirements for nonresident aliens discussed in chapter 7, they must file separate returns as nonresident aliens for 2013. 1040ez instructions 2011 If Dick becomes a resident alien again in 2014, their choice is no longer suspended. 1040ez instructions 2011 Ending the Choice Once made, the choice to be treated as a resident applies to all later years unless suspended (as explained earlier under Suspending the Choice ) or ended in one of the following ways. 1040ez instructions 2011 If the choice is ended in one of the following ways, neither spouse can make this choice in any later tax year. 1040ez instructions 2011 Revocation. 1040ez instructions 2011 Either spouse can revoke the choice for any tax year, provided he or she makes the revocation by the due date for filing the tax return for that tax year. 1040ez instructions 2011 The spouse who revokes the choice must attach a signed statement declaring that the choice is being revoked. 1040ez instructions 2011 The statement must include the name, address, and identification number of each spouse. 1040ez instructions 2011 (If one spouse dies, include the name and address of the person who is revoking the choice for the deceased spouse. 1040ez instructions 2011 ) The statement also must include a list of any states, foreign countries, and possessions that have community property laws in which either spouse is domiciled or where real property is located from which either spouse receives income. 1040ez instructions 2011 File the statement as follows. 1040ez instructions 2011 If the spouse revoking the choice must file a return, attach the statement to the return for the first year the revocation applies. 1040ez instructions 2011 If the spouse revoking the choice does not have to file a return, but does file a return (for example, to obtain a refund), attach the statement to the return. 1040ez instructions 2011 If the spouse revoking the choice does not have to file a return and does not file a claim for refund, send the statement to the Internal Revenue Service Center where you filed the last joint return. 1040ez instructions 2011 Death. 1040ez instructions 2011 The death of either spouse ends the choice, beginning with the first tax year following the year the spouse died. 1040ez instructions 2011 However, if the surviving spouse is a U. 1040ez instructions 2011 S. 1040ez instructions 2011 citizen or resident and is entitled to the joint tax rates as a surviving spouse, the choice will not end until the close of the last year for which these joint rates may be used. 1040ez instructions 2011 If both spouses die in the same tax year, the choice ends on the first day after the close of the tax year in which the spouses died. 1040ez instructions 2011 Legal separation. 1040ez instructions 2011 A legal separation under a decree of divorce or separate maintenance ends the choice as of the beginning of the tax year in which the legal separation occurs. 1040ez instructions 2011 Inadequate records. 1040ez instructions 2011 The Internal Revenue Service can end the choice for any tax year that either spouse has failed to keep adequate books, records, and other information necessary to determine the correct income tax liability, or to provide adequate access to those records. 1040ez instructions 2011 Aliens From American Samoa or Puerto Rico If you are a nonresident alien in the United States and a bona fide resident of American Samoa or Puerto Rico during the entire tax year, you are taxed, with certain exceptions, according to the rules for resident aliens of the United States. 1040ez instructions 2011 For more information, see Bona Fide Residents of American Samoa or Puerto Rico in chapter 5. 1040ez instructions 2011 If you are a nonresident alien from American Samoa or Puerto Rico who does not qualify as a bona fide resident of American Samoa or Puerto Rico for the entire tax year, you are taxed as a nonresident alien. 1040ez instructions 2011 Resident aliens who formerly were bona fide residents of American Samoa or Puerto Rico are taxed according to the rules for resident aliens. 1040ez instructions 2011 Prev  Up  Next   Home   More Online Publications
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The 1040ez Instructions 2011

1040ez instructions 2011 Listed Property Table of Contents Topics - This chapter discusses: Useful Items - You may want to see: Listed Property DefinedPassenger Automobile Defined Dwelling Unit Other Property Used for Transportation Computers and Related Peripheral Equipment Predominant Use TestMeeting the Predominant Use Test Qualified Business Use Method of Allocating Use Applying the Predominant Use Test Deductions After Recovery Period Leased PropertyLessor Lessee What Records Must Be KeptAdequate Records Reporting Information on Form 4562 Deductions in Later Years Appendix Topics - This chapter discusses: Listed property defined The predominant use test What records must be kept Useful Items - You may want to see: Publication 463 Travel, Entertainment, and Gift Expenses 587 Business Use of Your Home (Including Use by Day-Care Providers) 917 Business Use of a Car 946 How To Depreciate Property Form (and Instructions) 2106–EZ Unreimbursed Employee Business Expenses 2106 Employee Business Expenses 4255 Recapture of Investment Credit 4562 Depreciation and Amortization This chapter discusses some special rules and recordkeeping requirements for listed property. 1040ez instructions 2011 For complete coverage of the rules, including the rules concerning passenger automobiles, see Publication 946. 1040ez instructions 2011 If listed property is not used predominantly (more than 50%) in a qualified business use as discussed inPredominant Use Test, later, the section 179 deduction is not allowable and the property must be depreciated using the straight line method. 1040ez instructions 2011 Listed Property Defined Listed property is any of the following: Any passenger automobile (defined later), Any other property used for transportation, Any property of a type generally used for entertainment, recreation, or amusement (including photographic, phonographic, communication, and video recording equipment), Any computer and related peripheral equipment, defined later, unless it is used only at a regular business establishment and owned or leased by the person operating the establishment. 1040ez instructions 2011 A regular business establishment includes a portion of a dwelling unit (defined later), if, and only if, that portion is used both regularly and exclusively for business as discussed in Publication 587. 1040ez instructions 2011 Any cellular telephone (or similar telecommunication equipment) placed in service or leased in a tax year beginning after 1989. 1040ez instructions 2011 Passenger Automobile Defined A passenger automobile is any four-wheeled vehicle made primarily for use on public streets, roads, and highways and rated at 6,000 pounds or less of unloaded gross vehicle weight (at 6,000 pounds or less of gross vehicle weight for trucks and vans). 1040ez instructions 2011 It includes any part, component, or other item physically attached to the automobile or usually included in the purchase price of an automobile. 1040ez instructions 2011 A passenger automobile does not include: An ambulance, hearse, or combination ambulance-hearse used directly in a trade or business, and A vehicle used directly in the trade or business of transporting persons or property for compensation or hire. 1040ez instructions 2011 Dwelling Unit A dwelling unit is a house or apartment used to provide living accommodations in a building or structure. 1040ez instructions 2011 It does not include a unit in a hotel, motel, inn, or other establishment where more than half the units are used on a transient basis. 1040ez instructions 2011 Other Property Used for Transportation Other property used for transportation includes trucks, buses, boats, airplanes, motorcycles, and any other vehicles for transporting persons or goods. 1040ez instructions 2011 Listed property does not include: Any vehicle which, by reason of its design, is not likely to be used more than a minimal amount for personal purposes, such as clearly marked police and fire vehicles, ambulances, or hearses used for those purposes, Any vehicle that is designed to carry cargo and that has a loaded gross vehicle weight over 14,000 pounds, bucket trucks (cherry pickers), cement mixers, combines, cranes and derricks, delivery trucks with seating only for the driver (or only for the driver plus a folding jump seat), dump trucks (including garbage trucks), flatbed trucks, forklifts, qualified moving vans, qualified specialized utility repair trucks, and refrigerated trucks, Any passenger bus used for that purpose with a capacity of at least 20 passengers and school buses, Any tractor or other special purpose farm vehicle, and unmarked vehicles used by law enforcement officers if the use is officially authorized, and Any vehicle, such as a taxicab, if substantially all its use is in the trade or business of providing services to transport persons or property for compensation or hire by unrelated persons. 1040ez instructions 2011 Computers and Related Peripheral Equipment A computer is a programmable electronically activated device that: Is capable of accepting information, applying prescribed processes to the information, and supplying the results of those processes with or without human intervention, and Consists of a central processing unit with extensive storage, logic, arithmetic, and control capabilities. 1040ez instructions 2011 Related peripheral equipment is any auxiliary machine which is designed to be controlled by the central processing unit of a computer. 1040ez instructions 2011 Computer or peripheral equipment does not include: Any equipment which is an integral part of property which is not a computer, Typewriters, calculators, adding and accounting machines, copiers, duplicating equipment, and similar equipment, and Equipment of a kind, used primarily for the user's amusement or entertainment, such as video games. 1040ez instructions 2011 Predominant Use Test If “listed property,” defined earlier, placed in service after June 18, 1984, is not used predominantly (more than 50%) in a qualified business use during any tax year: The section 179 deduction on the property is not allowable, and You must depreciate the property using the straight line method. 1040ez instructions 2011 Listed property placed in service before 1987. 1040ez instructions 2011   For listed property placed in service before 1987, depreciate the property over the following period: Class of Property Listed Property Recovery Period 3-year property 5 years 5-year property 12 years 10-year property 25 years 18-year real property 40 years 19-year real property 40 years If you must use the above recovery periods for listed property not used predominantly in a trade or business, use the percentages from Table 16 titled Listed Property Not Used Predominantly (Other Than 18- or 19-year Real Property), and Table 17 for 18- or 19-year real property, near the end of this publication in the Appendix. 1040ez instructions 2011 Listed property placed in service after 1986. 1040ez instructions 2011   For information on listed property placed in service after 1986, see Publication 946. 1040ez instructions 2011 Meeting the Predominant Use Test Listed property meets the predominant use test for any tax year if its business use is more than 50% of its total use. 1040ez instructions 2011 You must allocate the use of any item of listed property used for more than one purpose during the tax year among its various uses. 1040ez instructions 2011 The percentage of investment use of listed property cannot be used as part of the percentage of qualified business use to meet the predominant use test. 1040ez instructions 2011 However, the combined total of business and investment use is taken into account to figure your depreciation deduction for the property. 1040ez instructions 2011 Note: Property does not stop being predominantly used in a qualified business use because of a transfer at death. 1040ez instructions 2011 Example. 1040ez instructions 2011 Sarah Bradley uses a home computer 50% of the time to manage her investments. 1040ez instructions 2011 She also uses the computer 40% of the time in her part-time consumer research business. 1040ez instructions 2011 Sarah's home computer is listed property because it is not used at a regular business establishment. 1040ez instructions 2011 Because her business use of the computer does not exceed 50%, the computer is not predominantly used in a qualified business use for the tax year. 1040ez instructions 2011 Because she does not meet the predominant use test, she cannot elect a section 179 deduction for this property. 1040ez instructions 2011 Her combined rate of business/investment use for determining her depreciation deduction is 90%. 1040ez instructions 2011 Qualified Business Use A qualified business use is any use in your trade or business. 1040ez instructions 2011 However, it does not include: The use of property held merely to produce income (investment use), The leasing of property to any 5% owner or related person (to the point that the property is used by a 5% owner or person related to the owner or lessee of the property), The use of property as compensation for the performance of services by a 5% owner or related person, or The use of property as compensation for the performance of services by any person (other than a5% owner or related person) unless the value of the use is included in that person's gross income for the use of the property and income tax is withheld on that amount where required. 1040ez instructions 2011 See Employees, later. 1040ez instructions 2011 5% owner. 1040ez instructions 2011   A 5% owner of a business, other than a corporation, is any person who owns more than 5% of the capital or profits interest in the business. 1040ez instructions 2011   A 5% owner of a corporation is any person who owns, or is considered to own: More than 5% of the outstanding stock of the corporation, or Stock possessing more than 5% of the total combined voting power of all stock in the corporation. 1040ez instructions 2011 Related person. 1040ez instructions 2011   A related person is anyone related to a taxpayer as discussed under Related persons, in chapter 2 under Nonqualifying Property in Publication 946. 1040ez instructions 2011 Entertainment Use The use of listed property for entertainment, recreation, or amusement purposes is treated as a qualified business use only to the extent that expenses (other than interest and property tax expenses) for its use are deductible as ordinary and necessary business expenses. 1040ez instructions 2011 See Publication 463. 1040ez instructions 2011 Leasing or Compensatory Use of Aircraft If at least 25% of the total use of any aircraft during the tax year is for a qualified business use, the leasing or compensatory use of the aircraft by a 5% owner or related person is treated as a qualified business use. 1040ez instructions 2011 Commuting The use of a vehicle for commuting is not business use, regardless of whether work is performed during the trip. 1040ez instructions 2011 Use of Your Passenger Automobile by Another Person If someone else uses your automobile, that use is not business use unless: That use is directly connected with your business, The value of the use is property reported by you as income to the other person and tax is withheld on the income where required, or The value of the use results in a payment of fair market rent. 1040ez instructions 2011 Any payment to you for the use of the automobile is treated as a rent payment for 3). 1040ez instructions 2011 Employees Any use by an employee of his or her own listed property (or listed property rented by an employee) in performing services as an employee is not business use unless: The use is for the employer's convenience, and The use is required as a condition of employment. 1040ez instructions 2011 Use for the employer's convenience. 1040ez instructions 2011   Whether the use of listed property is for the employer's convenience must be determined from all the facts. 1040ez instructions 2011 The use is for the employer's convenience if it is for a substantial business reason of the employer. 1040ez instructions 2011 The use of listed property during the employee's regular working hours to carry on the employer's business is generally for the employer's convenience. 1040ez instructions 2011 Use required as a condition of employment. 1040ez instructions 2011   Whether the use of listed property is a condition of employment depends on all the facts and circumstances. 1040ez instructions 2011 The use of property must be required for the employee to perform duties properly. 1040ez instructions 2011 The employer need not explicitly require the employee to use the property. 1040ez instructions 2011 A mere statement by the employer that the use of the property is a condition of employment is not sufficient. 1040ez instructions 2011 Example 1. 1040ez instructions 2011 Virginia Sycamore is employed as a courier with We Deliver which provides local courier services. 1040ez instructions 2011 She owns and uses a motorcycle to deliver packages to downtown offices. 1040ez instructions 2011 We Deliver explicitly requires all delivery persons to own a small car or motorcycle for use in their employment. 1040ez instructions 2011 The company reimburses delivery persons for their costs. 1040ez instructions 2011 Virginia's use of the motorcycle is for the convenience of We Deliver and is required as a condition of employment. 1040ez instructions 2011 Example 2. 1040ez instructions 2011 Bill Nelson is an inspector for Uplift, a construction company with many sites in the local area. 1040ez instructions 2011 He must travel to these sites on a regular basis. 1040ez instructions 2011 Uplift does not furnish an automobile or explicitly require him to use his own automobile. 1040ez instructions 2011 However, it reimburses him for any costs he incurs in traveling to the various sites. 1040ez instructions 2011 The use of his own automobile or a rental automobile is for the convenience of Uplift and is required as a condition of employment. 1040ez instructions 2011 Method of Allocating Use For passenger automobiles and other means of transportation, allocate the property's use on the basis of mileage. 1040ez instructions 2011 You determine the percentage of qualified business use by dividing the number of miles the vehicle is driven for business purposes during the year by the total number of miles the vehicle is driven for all purposes (including business miles) during the year. 1040ez instructions 2011 For other items of listed property, allocate the property's use on the basis of the most appropriate unit of time. 1040ez instructions 2011 For example, you can determine the percentage of business use of a computer by dividing the number of hours the computer is used for business purposes during the year by the total number of hours the computer is used for all purposes (including business hours) during the year. 1040ez instructions 2011 Applying the Predominant Use Test You must apply the predominant use test for an item of listed property each year of the recovery period. 1040ez instructions 2011 First Recovery Year If any item of listed property is not used predominantly in a qualified business use in the year it is placed in service: The property is not eligible for a section 179 deduction, and The depreciation deduction must be figured using the straight line method. 1040ez instructions 2011 Note: The required use of the straight line method for an item of listed property that does not meet the predominant use test is not the same as electing the straight line method. 1040ez instructions 2011 It does not mean that you have to use the straight line method for other property in the same class as the item of listed property. 1040ez instructions 2011 Years After the First Recovery Year If you use listed property predominantly (more than 50%) in a qualified business use in the tax year you place it in service, but not in a subsequent tax year during the recovery period, the following rules apply: Figure depreciation using the straight line method. 1040ez instructions 2011 Do this for each year, beginning with the year you no longer use the property predominantly in a qualified business use, and Figure any excess depreciation on the property and add it to: Your gross income, and The adjusted basis of your property. 1040ez instructions 2011 See Recapture of excess depreciation, next. 1040ez instructions 2011 Recapture of excess depreciation. 1040ez instructions 2011   You must include any excess depreciation in your gross income for the first tax year the property is not predominantly used in a qualified business use. 1040ez instructions 2011 Any excess depreciation must also be added to the adjusted basis of your property. 1040ez instructions 2011 Excess depreciation is the excess (if any) of: The amount of depreciation allowable for the property (including any section 179 deduction claimed) for tax years before the first tax year the property was not predominantly used in a qualified business use, over The amount of depreciation that would have been allowable for those years if the property were not used predominantly in a qualified business use for the year it was placed in service. 1040ez instructions 2011 This means you figure your depreciation using the percentages fromTable 16 or 17. 1040ez instructions 2011 For information on investment credit recapture, see the instructions for Form 4255. 1040ez instructions 2011 Deductions After Recovery Period When listed property (other than passenger automobiles) is used for business, investment, and personal purposes, no deduction is ever allowable for the personal use. 1040ez instructions 2011 In tax years after the recovery period, you must determine if there is any unrecovered basis remaining before you compute the depreciation deduction for that tax year. 1040ez instructions 2011 To make this determination, figure the depreciation for earlier tax years as if your property were used 100% for business or investment purposes, beginning with the first tax year in which some or all use is for business or investment. 1040ez instructions 2011 See Car Used 50% or Less for Business in Publication 917. 1040ez instructions 2011 Leased Property The limitations on cost recovery deductions apply to the rental of listed property. 1040ez instructions 2011 The following discussion covers the rules that apply to the lessor (the owner of the property) and the lessee (the person who rents the property from the owner). 1040ez instructions 2011 SeeLeasing a Car in Publication 917 for a discussion of leased passenger automobiles. 1040ez instructions 2011 Lessor The limitations on cost recovery generally do not apply to any listed property leased or held for leasing by anyone regularly engaged in the business of leasing listed property. 1040ez instructions 2011 A person is considered regularly engaged in the business of leasing listed property only if contracts for leasing of listed property are entered into with some frequency over a continuous period of time. 1040ez instructions 2011 This determination is made on the basis of the facts and circumstances in each case and takes into account the nature of the person's business in its entirety. 1040ez instructions 2011 Occasional or incidental leasing activity is insufficient. 1040ez instructions 2011 For example, a person leasing only one passenger automobile during a tax year is not regularly engaged in the business of leasing automobiles. 1040ez instructions 2011 An employer who allows an employee to use the employer's property for personal purposes and charges the employee for the use is not regularly engaged in the business of leasing the property used by the employee. 1040ez instructions 2011 Lessee A lessee of listed property (other than passenger automobiles), must include an amount in gross income called the inclusion amount for the first tax year the property is not used predominantly in a qualified business use. 1040ez instructions 2011 Inclusion amount for property leased before 1987. 1040ez instructions 2011   You determine the inclusion amount for property leased after June 18, 1984 and before 1987 by multiplying the fair market value of the property by both the average business/investment use percentage and the applicable percentage. 1040ez instructions 2011 You can find the applicable percentages for listed property that is 5- or 10-year recovery property in Tables 19 or 20 in Appendix A of Publication 946. 1040ez instructions 2011   The lease term for listed property other than 18- or 19-year real property, and residential rental or nonresidential real property, includes options to renew. 1040ez instructions 2011 For 18- or 19-year real property and residential rental or nonresidential real property that is listed property, the period of the lease does not include any option to renew at fair market value, determined at the time of renewal. 1040ez instructions 2011 You treat two or more successive leases that are part of the same transaction (or a series of related transactions) for the same or substantially similar property as one lease. 1040ez instructions 2011 Special rules. 1040ez instructions 2011   The lessee adds the inclusion amount to gross income in the next tax year if: The lease term begins within 9 months before the close of the lessee's tax year, The lessee does not use the property predominantly in a qualified business use during that portion of the tax year, and The lease term continues into the lessee's next tax year. 1040ez instructions 2011 The lessee determines the inclusion amount by taking into account the average of the business/investment use for both tax years and the applicable percentage for the tax year the lease term begins. 1040ez instructions 2011   If the lease term is less than one year, the amount included in gross income is the amount that bears the same ratio to the additional inclusion amount as the number of days in the lease term bears to 365. 1040ez instructions 2011 Maximum inclusion amount. 1040ez instructions 2011   The inclusion amount cannot be more than the sum of the deductible amounts of rent allocable to the lessee's tax year in which the amount must be included in gross income. 1040ez instructions 2011 What Records Must Be Kept You cannot take any depreciation or section 179 deduction for the use of listed property (including passenger automobiles) unless you can prove business/investment use with adequate records or sufficient evidence to support your own statements. 1040ez instructions 2011 How long to keep records. 1040ez instructions 2011   For listed property, records must be kept for as long as any excess depreciation can be recaptured (included in income). 1040ez instructions 2011 Adequate Records To meet the adequate records requirement, you must maintain an account book, diary, log, statement of expense, trip sheet, or similar record or other documentary evidence that, together with the receipt, is sufficient to establish each element of an expenditure or use. 1040ez instructions 2011 It is not necessary to record information in an account book, diary, or similar record if the information is already shown on the receipt. 1040ez instructions 2011 However, your records should back up your receipts in an orderly manner. 1040ez instructions 2011 Elements of Expenditure or Use The records or other documentary evidence must support: The amount of each separate expenditure, such as the cost of acquiring the item, maintenance and repair costs, capital improvement costs, lease payments, and any other expenses, The amount of each business and investment use (based on an appropriate measure, such as mileage for vehicles and time for other listed property), and the total use of the property for the tax year, The date of the expenditure or use, and The business or investment purpose for the expenditure or use. 1040ez instructions 2011 Written documents of your expenditure or use are generally better evidence than oral statements alone. 1040ez instructions 2011 A written record prepared at or near the time of the expenditure or use has greater value as proof of the expenditure or use. 1040ez instructions 2011 A daily log is not required. 1040ez instructions 2011 However, some type of record containing the elements of an expenditure or the business or investment use of listed property made at or near the time and backed up by other documents is preferable to a statement prepared later. 1040ez instructions 2011 Timeliness The elements of an expenditure or use must be recorded at the time you have full knowledge of the elements. 1040ez instructions 2011 An expense account statement made from an account book, diary, or similar record prepared or maintained at or near the time of the expenditure or use is generally considered a timely record if in the regular course of business: The statement is submitted by an employee to the employer, or The statement is submitted by an independent contractor to the client or customer. 1040ez instructions 2011 For example, a log maintained on a weekly basis, which accounts for use during the week, will be considered a record made at or near the time of use. 1040ez instructions 2011 Business Purpose Supported An adequate record of business purpose must generally be in the form of a written statement. 1040ez instructions 2011 However, the amount of backup necessary to establish a business purpose depends on the facts and circumstances of each case. 1040ez instructions 2011 A written explanation of the business purpose will not be required if the purpose can be determined from the surrounding facts and circumstances. 1040ez instructions 2011 For example, a salesperson visiting customers on an established sales route will not normally need a written explanation of the business purpose of his or her travel. 1040ez instructions 2011 Business Use Supported An adequate record contains enough information on each element of every business or investment use. 1040ez instructions 2011 The amount of detail required to support the use depends on the facts and circumstances. 1040ez instructions 2011 For example, a taxpayer whose only business use of a truck is to make customer deliveries on an established route can satisfy the requirement by recording the length of the route, including the total number of miles driven during the tax year and the date of each trip at or near the time of the trips. 1040ez instructions 2011 Although an adequate record generally must be written, a record of the business use of listed property, such as a computer or automobile, can be prepared in a computer memory device using a logging program. 1040ez instructions 2011 Separate or Combined Expenditures or Uses Each use by you is normally considered a separate use. 1040ez instructions 2011 However, repeated uses can be combined as a single item. 1040ez instructions 2011 Each expenditure is recorded as a separate item and not combined with other expenditures. 1040ez instructions 2011 If you choose, however, amounts spent for the use of listed property during a tax year, such as for gasoline or automobile repairs, can be combined. 1040ez instructions 2011 If these expenses are combined, you do not need to support the business purpose of each expense. 1040ez instructions 2011 Instead, you can divide the expenses based on the total business use of the listed property. 1040ez instructions 2011 Uses which can be considered part of a single use, such as a round trip or uninterrupted business use, can be accounted for by a single record. 1040ez instructions 2011 For example, use of a truck to make deliveries at several locations which begin and end at the business premises and can include a stop at the business in between deliveries can be accounted for by a single record of miles driven. 1040ez instructions 2011 Use of a passenger automobile by a salesperson for a business trip away from home over a period of time can be accounted for by a single record of miles traveled. 1040ez instructions 2011 Minimal personal use (such as a stop for lunch between two business stops) is not an interruption of business use. 1040ez instructions 2011 Confidential Information If any of the information on the elements of an expenditure or use is confidential, it does not need to be in the account book or similar record if it is recorded at or near the time of the expenditure or use. 1040ez instructions 2011 It must be kept elsewhere and made available as support to the district director on request. 1040ez instructions 2011 Substantial Compliance If you have not fully supported a particular element of an expenditure or use, but have complied with the adequate records requirement for the expenditure or use to the district director's satisfaction, you can establish this element by any evidence the district director deems adequate. 1040ez instructions 2011 If you fail to establish that you have substantially complied with the adequate records requirement for an element of an expenditure or use to the district director's satisfaction, you must establish the element: By your own oral or written statement containing detailed information as to the element, and By other evidence sufficient to establish the element. 1040ez instructions 2011 If the element is the cost or amount, time, place, or date of an expenditure or use, its supporting evidence must be direct, such as oral testimony by witnesses or a written statement setting forth detailed information about the element or the documentary evidence. 1040ez instructions 2011 If the element is the business purpose of an expenditure, its supporting evidence can be circumstantial evidence. 1040ez instructions 2011 Sampling You can maintain an adequate record for portions of a tax year and use that record to support your business and investment use for the entire tax year if it can be shown by other evidence that the periods for which an adequate record is maintained are representative of use throughout the year. 1040ez instructions 2011 Loss of Records When you establish that failure to produce adequate records is due to loss of the records through circumstances beyond your control, such as through fire, flood, earthquake, or other casualty, you have the right to support a deduction by reasonable reconstruction of your expenditures and use. 1040ez instructions 2011 Reporting Information on Form 4562 If you claim a deduction for any listed property, you must provide the requested information on page 2, Section B of Form 4562. 1040ez instructions 2011 If you claim a deduction for any vehicle, you must answer certain questions onpage 2 of Form 4562 to provide information about the vehicle use. 1040ez instructions 2011 Employees. 1040ez instructions 2011   Employees claiming the standard mileage rate or actual expenses (including depreciation) must use Form 2106 instead of Part V of Form 4562. 1040ez instructions 2011 Employees claiming the standard mileage rate may be able to use Form 2106–EZ. 1040ez instructions 2011 Employer who provides vehicles to employees. 1040ez instructions 2011   An employer who provides vehicles to employees must obtain enough information from those employees to provide the requested information onForm 4562. 1040ez instructions 2011   An employer who provides more than five vehicles to employees need not include any information on his or her tax return. 1040ez instructions 2011 Instead, the employer must obtain the information from his or her employees and indicate on his or her return that the information was obtained and is being retained. 1040ez instructions 2011   You do not need to provide the information requested on page 2 of Form 4562 if, as an employer: You can satisfy the requirements of a written policy statement for vehicles either not used for personal purposes, or not used for personal purposes other than commuting, or You treat all vehicle use by employees as personal use. 1040ez instructions 2011 See the instructions for Form 4562. 1040ez instructions 2011 Deductions in Later Years When listed property is used for business, investment, and personal purposes, no deduction is allowable for its personal use either in the current year or any later tax year. 1040ez instructions 2011 In later years, you must determine if there is any remaining unadjusted or unrecovered basis before you compute the depreciation deduction for that tax year. 1040ez instructions 2011 In making this determination, figure the depreciation deductions for earlier tax years as if the listed property were used 100% for business or investment purposes in those years, beginning with the first tax year in which some or all of the property use is for business or investment. 1040ez instructions 2011 For more information about deductions after the recovery period for automobiles, see Publication 917. 1040ez instructions 2011 Appendix The following tables are for use in figuring depreciation deductions under the ACRS system. 1040ez instructions 2011 Table 1. 1040ez instructions 2011 15-Year Real Property* (Other Than Low-Inclome Housing) Table 3. 1040ez instructions 2011 Low-Income Housing* Table 6 - Table 9 Table 6 - Table 9 Table 10 - Table 13 Table 14 - Table 17 Prev  Up  Next   Home   More Online Publications