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Hr Block 1040nr

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Hr Block 1040nr

Hr block 1040nr 4. Hr block 1040nr   Communications and Air Transportation Taxes Table of Contents Uncollected Tax Report Communications TaxLocal-only service. Hr block 1040nr Private communication service. Hr block 1040nr Exemptions Credits or Refunds Air Transportation TaxesTransportation of Persons by Air International Air Travel Facilities Transportation of Property by Air Special Rules on Transportation Taxes Excise taxes are imposed on amounts paid for certain facilities and services. Hr block 1040nr If you receive any payment on which tax is imposed, you are required to collect the tax, file returns, and pay the tax over to the government. Hr block 1040nr If you fail to collect and pay over the taxes, you may be liable for the trust fund recovery penalty. Hr block 1040nr See chapter 14, later. Hr block 1040nr Uncollected Tax Report A separate report is required to be filed by collecting agents of communications services and air transportation taxes if the person from whom the facilities or services tax (the tax) is required to be collected (the taxpayer) refuses to pay the tax, or it is impossible for the collecting agent to collect the tax. Hr block 1040nr The report must contain the name and address of the taxpayer, the type of facility provided or service rendered, the amount paid for the facility or service (the amount on which the tax is based), and the date paid. Hr block 1040nr Regular method taxpayers. Hr block 1040nr   For regular method taxpayers, the report must be filed by the due date of the Form 720 on which the tax would have been reported. Hr block 1040nr Alternative method taxpayers. Hr block 1040nr   For alternative method taxpayers, the report must be filed by the due date of the Form 720 that includes an adjustment to the separate account for the uncollected tax. Hr block 1040nr See Alternative method in  chapter 11. Hr block 1040nr Where to file. Hr block 1040nr    Do not file the uncollected tax report with Form 720. Hr block 1040nr Instead, mail the report to: Internal Revenue Service Excise Tax Program SE:S:SP:EX MS C9-109 5000 Ellin Rd. Hr block 1040nr  Lanham, MD 20706 Communications Tax A 3% tax is imposed on amounts paid for local telephone service and teletypewriter exchange service. Hr block 1040nr Local telephone service. Hr block 1040nr   This includes access to a local telephone system and the privilege of telephonic quality communication with most people who are part of the system. Hr block 1040nr Local telephone service also includes any facility or services provided in connection with this service. Hr block 1040nr The tax applies to lease payments for certain customer premises equipment (CPE) even though the lessor does not also provide access to a local telecommunications system. Hr block 1040nr Local-only service. Hr block 1040nr   Local-only service is local telephone service as described above, provided under a plan that does not include long distance telephone service or that separately states the charge for local service on the bill to customers. Hr block 1040nr Local-only service also includes any facility or services provided in connection with this service, even though these services and facilities may also be used with long-distance service. Hr block 1040nr Private communication service. Hr block 1040nr   Private communication service is not local telephone service. Hr block 1040nr Private communication service includes accessory-type services provided in connection with a Centrex, PBX, or other similar system for dual use accessory equipment. Hr block 1040nr However, the charge for the service must be stated separately from the charge for the basic system, and the accessory must function, in whole or in part, in connection with intercommunication among the subscriber's stations. Hr block 1040nr Teletypewriter exchange service. Hr block 1040nr   This includes access from a teletypewriter or other data station to a teletypewriter exchange system and the privilege of intercommunication by that station with most persons having teletypewriter or other data stations in the same exchange system. Hr block 1040nr Figuring the tax. Hr block 1040nr   The tax is based on the sum of all charges for local telephone service included in the bill. Hr block 1040nr However, if the bill groups individual items for billing and tax purposes, the tax is based on the sum of the individual items within that group. Hr block 1040nr The tax on the remaining items not included in any group is based on the charge for each item separately. Hr block 1040nr Do not include in the tax base state or local sales or use taxes that are separately stated on the taxpayer's bill. Hr block 1040nr Exemptions Payments for certain services or payments from certain users are exempt from the communications tax. Hr block 1040nr Nontaxable service. Hr block 1040nr   Nontaxable service means bundled service and long distance service. Hr block 1040nr Nontaxable service also includes pre-paid telephone cards and pre-paid cellular service. Hr block 1040nr Bundled service. Hr block 1040nr   Bundled service is local and long distance service provided under a plan that does not separately state the charge for the local telephone service. Hr block 1040nr Bundled service includes plans that provide both local and long distance service for either a flat monthly fee or a charge that varies with the elapsed transmission time for which the service is used. Hr block 1040nr Telecommunications companies provide bundled service for both landlines and wireless (cellular) service. Hr block 1040nr If Voice over Internet Protocol service provides both local and long distance service and the charges are not separately stated, such service is bundled service. Hr block 1040nr   The method for sending or receiving a call, such as on a landline telephone, wireless (cellular), or some other method, does not affect whether a service is local-only or bundled. Hr block 1040nr Long distance service. Hr block 1040nr   Long distance service is telephonic quality communication with persons whose telephones are outside the local telephone system of the caller. Hr block 1040nr Pre-paid telephone cards (PTC). Hr block 1040nr   A PTC will be treated as bundled service unless a PTC expressly states it is for local-only service. Hr block 1040nr Generally, the person responsible for collecting the tax is the carrier who transfers the PTC to the transferee. Hr block 1040nr The transferee is the first person that is not a carrier to whom a PTC is transferred by the carrier. Hr block 1040nr The transferee is the person liable for the tax and is eligible to request a credit or refund. Hr block 1040nr For more information, see Regulations section 49. Hr block 1040nr 4251-4. Hr block 1040nr   The holder is the person that purchases a PTC to use and not to resell. Hr block 1040nr Holders are not liable for the tax and cannot request a credit or refund. Hr block 1040nr Pre-paid cellular telephones. Hr block 1040nr   Rules similar to the PTC rules described above apply to pre-paid cellular telephones. Hr block 1040nr The transferee is the person eligible to request the credit or refund. Hr block 1040nr Installation charges. Hr block 1040nr   The tax does not apply to payments received for the installation of any instrument, wire, pole, switchboard, apparatus, or equipment. Hr block 1040nr However, the tax does apply to payments for the repair or replacement of those items incidental to ordinary maintenance. Hr block 1040nr Answering services. Hr block 1040nr   The tax does not apply to amounts paid for a private line, an answering service, and a one-way paging or message service if they do not provide access to a local telephone system and the privilege of telephonic communication as part of the local telephone system. Hr block 1040nr Mobile radio telephone service. Hr block 1040nr   The tax does not apply to payments for a two-way radio service that does not provide access to a local telephone system. Hr block 1040nr Coin-operated telephones. Hr block 1040nr   The tax for local telephone service does not apply to payments made for services by inserting coins in public coin-operated telephones. Hr block 1040nr But the tax applies if the coin-operated telephone service is furnished for a guaranteed amount. Hr block 1040nr Figure the tax on the amount paid under the guarantee plus any fixed monthly or other periodic charge. Hr block 1040nr Telephone-operated security systems. Hr block 1040nr   The tax does not apply to amounts paid for telephones used only to originate calls to a limited number of telephone stations for security entry into a building. Hr block 1040nr In addition, the tax does not apply to any amounts paid for rented communication equipment used in the security system. Hr block 1040nr News services. Hr block 1040nr   The tax on teletypewriter exchange service does not apply to charges for the following news services. Hr block 1040nr Services dealing exclusively with the collection or dissemination of news for or through the public press or radio or television broadcasting. Hr block 1040nr Services used exclusively in the collection or dissemination of news by a news ticker service furnishing a general news service similar to that of the public press. Hr block 1040nr This exemption applies to payments received for messages from one member of the news media to another member (or to or from their bona fide correspondents). Hr block 1040nr For the exemption to apply, the charge for these services must be billed in writing to the person paying for the service and that person must certify in writing that the services are used for an exempt purpose. Hr block 1040nr Services not exempted. Hr block 1040nr   The tax applies to amounts paid by members of the news media for local telephone service. Hr block 1040nr International organizations and the American Red Cross. Hr block 1040nr   The tax does not apply to communication services furnished to an international organization or to the American National Red Cross. Hr block 1040nr Nonprofit hospitals. Hr block 1040nr   The tax does not apply to telephone services furnished to income tax-exempt nonprofit hospitals for their use. Hr block 1040nr Also, the tax does not apply to amounts paid by these hospitals to provide local telephone service in the homes of their personnel who must be reached during their off-duty hours. Hr block 1040nr Nonprofit educational organizations. Hr block 1040nr   The tax does not apply to payments received for services and facilities furnished to a nonprofit educational organization for its use. Hr block 1040nr A nonprofit educational organization is one that satisfies all the following requirements. Hr block 1040nr It normally maintains a regular faculty and curriculum. Hr block 1040nr It normally has a regularly enrolled body of pupils or students in attendance at the place where its educational activities are regularly carried on. Hr block 1040nr It is exempt from income tax under section 501(a). Hr block 1040nr This includes a school operated by an organization exempt under section 501(c)(3) if the school meets the above qualifications. Hr block 1040nr Qualified blood collector organizations. Hr block 1040nr   The tax does not apply to telephone services furnished to qualified blood collector organizations for their use. Hr block 1040nr A qualified blood collector organization is one that is: Described in section 501(c)(3) and exempt from tax under section 501(a), Primarily engaged in the activity of collecting human blood, Registered with the IRS, and Registered by the Food and Drug Administration to collect blood. Hr block 1040nr Federal, state, and local government. Hr block 1040nr   The tax does not apply to communication services provided to the government of the United States, the government of any state or its political subdivisions, the District of Columbia, or the United Nations. Hr block 1040nr Treat an Indian tribal government as a state for the exemption from the communications tax only if the services involve the exercise of an essential tribal government function. Hr block 1040nr Exemption certificate. Hr block 1040nr   Any form of exemption certificate will be acceptable if it includes all the information required by the Internal Revenue Code and Regulations. Hr block 1040nr See Regulations section 49. Hr block 1040nr 4253-11. Hr block 1040nr File the certificate with the provider of the communication services. Hr block 1040nr An exemption certificate is not required for nontaxable services. Hr block 1040nr   The following users that are exempt from the communications tax do not have to file an annual exemption certificate after they have filed the initial certificate to claim an exemption from the communications tax. Hr block 1040nr The American National Red Cross and other international organizations. Hr block 1040nr Nonprofit hospitals. Hr block 1040nr Nonprofit educational organizations. Hr block 1040nr Qualified blood collector organizations. Hr block 1040nr State and local governments. Hr block 1040nr   The federal government does not have to file any exemption certificate. Hr block 1040nr   All other organizations must furnish exemption certificates when required. Hr block 1040nr Credits or Refunds If tax is collected and paid over for nontaxable services, or for certain services or users exempt from the communications tax, the collector or taxpayer may claim a credit or refund if it has repaid the tax to the person from whom the tax was collected or obtained the consent of that person to the allowance of the credit or refund. Hr block 1040nr Alternatively, the person who paid the tax may claim a refund. Hr block 1040nr For more information on how to file for credits or refunds, see the Instructions for Form 720 or Form 8849. Hr block 1040nr Collectors. Hr block 1040nr   The collector may request a credit or refund if it has repaid the tax to the person from whom the tax was collected, or obtained the consent of that person to the allowance of the credit or refund. Hr block 1040nr These requirements also apply to nontaxable service refunds. Hr block 1040nr Collectors using the regular method for deposits. Hr block 1040nr   Collectors using the regular method for deposits must use Form 720X to request a credit or refund if the collector has repaid the tax to the person from whom the tax was collected, or obtained the consent of that person to the allowance of the credit or refund. Hr block 1040nr Collectors using the alternative method for deposits. Hr block 1040nr   Collectors using the alternative method for deposits must adjust their separate accounts for the credit or refund if it has repaid the tax to the person from whom the tax was collected, or obtained the consent of that person to the allowance of the credit or refund. Hr block 1040nr For more information, see the Instructions for Form 720. Hr block 1040nr Air Transportation Taxes Taxes are imposed on amounts paid for: Transportation of persons by air, Use of international air travel facilities, and Transportation of property by air. Hr block 1040nr Transportation of Persons by Air The tax on transportation of persons by air is made up of the: Percentage tax, and Domestic-segment tax. Hr block 1040nr Percentage tax. Hr block 1040nr   A tax of 7. Hr block 1040nr 5% applies to amounts paid for taxable transportation of persons by air. Hr block 1040nr Amounts paid for transportation include charges for layover or waiting time and movement of aircraft in deadhead service. Hr block 1040nr Mileage awards. Hr block 1040nr   The percentage tax may apply to an amount paid (in cash or in kind) to an air carrier (or any related person) for the right to provide mileage awards for, or other reductions in the cost of, any transportation of persons by air. Hr block 1040nr For example, this applies to mileage awards purchased by credit card companies, telephone companies, restaurants, hotels, and other businesses. Hr block 1040nr   Generally, the percentage tax does not apply to amounts paid for mileage awards where the mileage awards cannot, under any circumstances, be redeemed for air transportation that is subject to the tax. Hr block 1040nr Until regulations are issued, the following rules apply to mileage awards. Hr block 1040nr Amounts paid for mileage awards that cannot be redeemed for taxable transportation beginning and ending in the United States are not subject to the tax. Hr block 1040nr For this rule, mileage awards issued by a foreign air carrier are considered to be usable only on that foreign air carrier and thus not redeemable for taxable transportation beginning and ending in the United States. Hr block 1040nr Therefore, amounts paid to a foreign air carrier for mileage awards are not subject to the tax. Hr block 1040nr Amounts paid by an air carrier to a domestic air carrier for mileage awards that can be redeemed for taxable transportation are not subject to the tax to the extent those miles will be awarded in connection with the purchase of taxable transportation. Hr block 1040nr Amounts paid by an air carrier to a domestic air carrier for mileage awards that can be redeemed for taxable transportation are subject to the tax to the extent those miles will not be awarded in connection with the purchase of taxable transportation. Hr block 1040nr Domestic-segment tax. Hr block 1040nr   The domestic-segment tax is a flat dollar amount for each segment of taxable transportation for which an amount is paid. Hr block 1040nr However, see Rural airports, later. Hr block 1040nr A segment is a single takeoff and a single landing. Hr block 1040nr The amount of the domestic-segment tax is in the Instructions for Form 720. Hr block 1040nr Charter flights. Hr block 1040nr    If an aircraft is chartered, the domestic-segment tax for each segment of taxable transportation is figured by multiplying the tax by the number of passengers transported on the aircraft. Hr block 1040nr Rural airports. Hr block 1040nr   The domestic-segment tax does not apply to a segment to or from a rural airport. Hr block 1040nr An airport is a rural airport for a calendar year if fewer than 100,000 commercial passengers departed from the airport by air during the second preceding calendar year (the 100,000 passenger rule), and one of the following is true: The airport is not located within 75 miles of another airport from which 100,000 or more commercial passengers departed during the second preceding calendar year, The airport was receiving essential air service subsidies as of August 5, 1997, or The airport is not connected by paved roads to another airport. Hr block 1040nr   To apply the 100,000 passenger rule to any airport described in (3) above, only count commercial passengers departing from the airport by air on flight segments of at least 100 miles. Hr block 1040nr   An updated list of rural airports can be found on the Department of Transportation website at www. Hr block 1040nr dot. Hr block 1040nr gov and enter the phrase “Essential Air Service” in the search box. Hr block 1040nr Taxable transportation. Hr block 1040nr   Taxable transportation is transportation by air that meets either of the following tests. Hr block 1040nr It begins and ends either in the United States or at any place in Canada or Mexico not more than 225 miles from the nearest point on the continental United States boundary (this is the 225-mile zone). Hr block 1040nr It is directly or indirectly from one port or station in the United States to another port or station in the United States, but only if it is not a part of uninterrupted international air transportation, discussed later. Hr block 1040nr Round trip. Hr block 1040nr   A round trip is considered two separate trips. Hr block 1040nr The first trip is from the point of departure to the destination. Hr block 1040nr The second trip is the return trip from that destination. Hr block 1040nr Uninterrupted international air transportation. Hr block 1040nr   This means transportation entirely by air that does not begin and end in the United States or in the 225-mile zone if there is not more than a 12-hour scheduled interval between arrival and departure at any station in the United States. Hr block 1040nr For a special rule that applies to military personnel, see Exemptions, later. Hr block 1040nr Transportation between the continental U. Hr block 1040nr S. Hr block 1040nr and Alaska or Hawaii. Hr block 1040nr   This transportation is partially exempt from the tax on transportation of persons by air. Hr block 1040nr The tax does not apply to the part of the trip between the point at which the route of transportation leaves or enters the continental United States (or a port or station in the 225-mile zone) and the point at which it enters or leaves Hawaii or Alaska. Hr block 1040nr Leaving or entering occurs when the route of the transportation passes over either the United States border or a point 3 nautical miles (3. Hr block 1040nr 45 statute miles) from low tide on the coast line, or when it leaves a port or station in the 225-mile zone. Hr block 1040nr Therefore, this transportation is subject to the percentage tax on the part of the trip in U. Hr block 1040nr S. Hr block 1040nr airspace, the domestic-segment tax for each domestic segment, and the tax on the use of international air travel facilities, discussed later. Hr block 1040nr Transportation within Alaska or Hawaii. Hr block 1040nr   The tax on transportation of persons by air applies to the entire fare paid in the case of flights between any of the Hawaiian Islands, and between any ports or stations in the Aleutian Islands or other ports or stations elsewhere in Alaska. Hr block 1040nr The tax applies even though parts of the flights may be over international waters or over Canada, if no point on the direct line of transportation between the ports or stations is more than 225 miles from the United States (Hawaii or Alaska). Hr block 1040nr Package tours. Hr block 1040nr   The air transportation taxes apply to “complimentary” air transportation furnished solely to participants in package holiday tours. Hr block 1040nr The amount paid for these package tours includes a charge for air transportation even though it may be advertised as “free. Hr block 1040nr ” This rule also applies to the tax on the use of international air travel facilities, discussed later. Hr block 1040nr Liability for tax. Hr block 1040nr   The person paying for taxable transportation is liable for the tax and, ordinarily, the person receiving the payment collects the tax, files the returns, and pays the tax over to the government. Hr block 1040nr However, if payment is made outside the United States for a prepaid order, exchange order, or similar order, the person furnishing the initial transportation provided for under that order must collect the tax. Hr block 1040nr    A travel agency that is an independent broker and sells tours on aircraft that it charters must collect the transportation tax, file the returns, and pay the tax over to the government. Hr block 1040nr However, a travel agency that sells tours as the agent of an airline must collect the tax and remit it to the airline for the filing of returns and for the payment of the tax over to the government. Hr block 1040nr An independent third party that is not under the airline's supervision or control, but is acting on behalf of, and receiving compensation from, a passenger, is not required to collect the tax and pay it to the government. Hr block 1040nr For more information on resellers of air transportation, see Revenue Ruling 2006-52. Hr block 1040nr You can find Revenue Ruling 2006-52 on page 761 of I. Hr block 1040nr R. Hr block 1040nr B. Hr block 1040nr 2006-43 at www. Hr block 1040nr irs. Hr block 1040nr gov/pub/irs-irbs/irb06-43. Hr block 1040nr pdf. Hr block 1040nr   The fact that the aircraft does not use public or commercial airports in taking off and landing has no effect on the tax. Hr block 1040nr But see Certain helicopter uses, later. Hr block 1040nr   For taxable transportation that begins and ends in the United States, the tax applies regardless of whether the payment is made in or outside the United States. Hr block 1040nr   If the tax is not paid when payment for the transportation is made, the air carrier providing the initial segment of the transportation that begins or ends in the United States becomes liable for the tax. Hr block 1040nr Exemptions. Hr block 1040nr   The tax on transportation of persons by air does not apply in the following situations. Hr block 1040nr See also Special Rules on Transportation Taxes, later. Hr block 1040nr Military personnel on international trips. Hr block 1040nr   When traveling in uniform at their own expense, United States military personnel on authorized leave are deemed to be traveling in uninterrupted international air transportation (defined earlier) even if the scheduled interval between arrival and departure at any station in the United States is actually more than 12 hours. Hr block 1040nr However, such personnel must buy their tickets within 12 hours after landing at the first domestic airport and accept the first available accommodation of the type called for by their tickets. Hr block 1040nr The trip must begin or end outside the United States and the 225-mile zone. Hr block 1040nr Certain helicopter uses. Hr block 1040nr   The tax does not apply to air transportation by helicopter if the helicopter is used for any of the following purposes. Hr block 1040nr Transporting individuals, equipment, or supplies in the exploration for, or the development or removal of, hard minerals, oil, or gas. Hr block 1040nr Planting, cultivating, cutting, transporting, or caring for trees (including logging operations). Hr block 1040nr Providing emergency medical transportation. Hr block 1040nr   However, during a use described in items (1) or (2), the tax applies if the helicopter takes off from, or lands at, a facility eligible for assistance under the Airport and Airway Development Act of 1970, or otherwise uses services provided under section 44509 or 44913(b) or subchapter I of chapter 471 of title 49, United States Code. Hr block 1040nr For item (1), treat each flight segment as a separate flight. Hr block 1040nr Fixed-wing aircraft uses. Hr block 1040nr   The tax does not apply to air transportation by fixed-wing aircraft if the fixed-wing aircraft is used for any of the following purposes. Hr block 1040nr Planting, cultivating, cutting, transporting, or caring for trees (including logging operations). Hr block 1040nr Providing emergency medical transportation. Hr block 1040nr The aircraft must be equipped for and exclusively dedicated on that flight to acute care emergency medical services. Hr block 1040nr   However, during a use described in item (1), the tax applies if the fixed-wing aircraft takes off from, or lands at, a facility eligible for assistance under the Airport and Airway Development Act of 1970, or otherwise uses services provided under section 44509 or 44913(b) or subchapter I of chapter 471 of title 49, United States Code. Hr block 1040nr Skydiving. Hr block 1040nr   The tax does not apply to any air transportation exclusively for the purpose of skydiving. Hr block 1040nr Seaplanes. Hr block 1040nr   The tax does not apply to any air transportation by seaplane for any segment consisting of a takeoff from, and a landing on, water if the places where the takeoff and landing occur are not receiving financial assistance from the Airport and Airways Trust Fund. Hr block 1040nr Bonus tickets. Hr block 1040nr   The tax does not apply to free bonus tickets issued by an airline company to its customers who have satisfied all requirements to qualify for the bonus tickets. Hr block 1040nr However, the tax applies to amounts paid by customers for advance bonus tickets when customers have traveled insufficient mileage to fully qualify for the free advance bonus tickets. Hr block 1040nr International Air Travel Facilities A tax per person is imposed (whether in or outside the United States) for international flights that begin or end in the United States. Hr block 1040nr However, for a domestic segment that begins or ends in Alaska or Hawaii, a reduced tax per person applies only to departures. Hr block 1040nr This tax does not apply if all the transportation is subject to the percentage tax, discussed earlier. Hr block 1040nr It also doesn't apply if the surtax on fuel used in a fractional ownership program aircraft (discussed earlier) is imposed. Hr block 1040nr See the Instructions for Form 720 for the tax rates. Hr block 1040nr Transportation of Property by Air A tax of 6. Hr block 1040nr 25% is imposed on amounts paid (whether in or outside the United States) for transportation of property by air. Hr block 1040nr The fact that the aircraft may not use public or commercial airports in taking off and landing has no effect on the tax. Hr block 1040nr The tax applies only to amounts paid to a person engaged in the business of transporting property by air for hire. Hr block 1040nr The tax applies only to transportation (including layover time and movement of aircraft in deadhead service) that begins and ends in the United States. Hr block 1040nr Thus, the tax does not apply to transportation of property by air that begins or ends outside the United States. Hr block 1040nr Exemptions. Hr block 1040nr   The tax on transportation of property by air does not apply in the following situations. Hr block 1040nr See also Special Rules on Transportation Taxes, later. Hr block 1040nr Cropdusting and firefighting service. Hr block 1040nr   The tax does not apply to amounts paid for cropdusting or aerial firefighting service. Hr block 1040nr Exportation. Hr block 1040nr    The tax does not apply to payments for transportation of property by air in the course of exportation (including to United States possessions) by continuous movement, as evidenced by the execution of Form 1363, Export Exemption Certificate. Hr block 1040nr See Form 1363 for more information. Hr block 1040nr Certain helicopter and fixed-wing air ambulance uses. Hr block 1040nr   The tax does not apply to amounts paid for the use of helicopters in construction to set heating and air conditioning units on roofs of buildings, to dismantle tower cranes, and to aid in construction of power lines and ski lifts. Hr block 1040nr   The tax also does not apply to air transportation by helicopter or fixed-wing aircraft for the purpose of providing emergency medical services. Hr block 1040nr The fixed-wing aircraft must be equipped for and exclusively dedicated on that flight to acute care emergency medical services. Hr block 1040nr Skydiving. Hr block 1040nr   The tax does not apply to any air transportation exclusively for the purpose of skydiving. Hr block 1040nr Excess baggage. Hr block 1040nr    The tax does not apply to excess baggage accompanying a passenger on an aircraft operated on an established line. Hr block 1040nr Surtax on fuel used in a fractional ownership program aircraft. Hr block 1040nr   The tax does not apply if the surtax on fuel used in a fractional ownership program aircraft (discussed earlier) is imposed. Hr block 1040nr Alaska and Hawaii. Hr block 1040nr   For transportation of property to and from Alaska and Hawaii, the tax in general does not apply to the portion of the transportation that is entirely outside the continental United States (or the 225-mile zone if the aircraft departs from or arrives at an airport in the 225-mile zone). Hr block 1040nr But the tax applies to flights between ports or stations in Alaska and the Aleutian Islands, as well as between ports or stations in Hawaii. Hr block 1040nr The tax applies even though parts of the flights may be over international waters or over Canada, if no point on a line drawn from where the route of transportation leaves the United States (Alaska) to where it reenters the United States (Alaska) is more than 225 miles from the United States. Hr block 1040nr Liability for tax. Hr block 1040nr   The person paying for taxable transportation is liable for the tax and, ordinarily, the person engaged in the business of transporting property by air for hire receives the payment, collects the tax, files the returns, and pays the tax over to the government. Hr block 1040nr   If tax is not paid when a payment is made outside the United States, the person furnishing the last segment of taxable transportation collects the tax from the person to whom the property is delivered in the United States. Hr block 1040nr Special Rules on Transportation Taxes In certain circumstances, special rules apply to the taxes on transportation of persons and property by air. Hr block 1040nr Aircraft used by affiliated corporations. Hr block 1040nr   The taxes do not apply to payments received by one member of an affiliated group of corporations from another member for services furnished in connection with the use of an aircraft. Hr block 1040nr However, the aircraft must be owned or leased by a member of the affiliated group and cannot be available for hire by a nonmember of the affiliated group. Hr block 1040nr Determine whether an aircraft is available for hire by a nonmember of an affiliated group on a flight-by-flight basis. Hr block 1040nr   For this rule, an affiliated group of corporations is any group of corporations connected with a common parent corporation through 80% or more of stock ownership. Hr block 1040nr Small aircraft. Hr block 1040nr   The taxes do not apply to transportation furnished by an aircraft having a maximum certificated takeoff weight of 6,000 pounds or less. Hr block 1040nr However, the taxes do apply if the aircraft is operated on an established line. Hr block 1040nr “Operated on an established line” means the aircraft operates with some degree of regularity between definite points. Hr block 1040nr However, it does not include any time an aircraft is being operated on a flight that is solely for sightseeing. Hr block 1040nr   Consider an aircraft to be operated on an established line if it is operated on a charter basis between two cities also served by that carrier on a regularly scheduled basis. Hr block 1040nr   Also, the taxes apply if the aircraft is jet-powered, regardless of its maximum certificated takeoff weight or whether or not it is operated on an established line. Hr block 1040nr Mixed load of persons and property. Hr block 1040nr   If a single amount is paid for air transportation of persons and property, the payment must be allocated between the amount subject to the tax on transportation of persons and the amount subject to the tax on transportation of property. Hr block 1040nr The allocation must be reasonable and supported by adequate records. Hr block 1040nr Credits or refunds. Hr block 1040nr   If tax is collected and paid over for air transportation that is not taxable air transportation, the collector may claim a credit or refund if it has repaid the tax to the person from whom the tax was collected or obtained the consent of that person to the allowance of the credit or refund. Hr block 1040nr Alternatively, the person who paid the tax may claim a refund. Hr block 1040nr For information on how to file for credits or refunds, see the Instructions for Form 720 or Form 8849. Hr block 1040nr Prev  Up  Next   Home   More Online Publications
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Hr block 1040nr Publication 584 - Additional Material Table of Contents This image is too large to be displayed in the current screen. Hr block 1040nr Please click the link to view the image. Hr block 1040nr Entrance Hall This image is too large to be displayed in the current screen. Hr block 1040nr Please click the link to view the image. Hr block 1040nr Living Room This image is too large to be displayed in the current screen. Hr block 1040nr Please click the link to view the image. Hr block 1040nr Dining Room This image is too large to be displayed in the current screen. Hr block 1040nr Please click the link to view the image. Hr block 1040nr Kitchen This image is too large to be displayed in the current screen. Hr block 1040nr Please click the link to view the image. Hr block 1040nr Den This image is too large to be displayed in the current screen. Hr block 1040nr Please click the link to view the image. Hr block 1040nr Bedrooms This image is too large to be displayed in the current screen. Hr block 1040nr Please click the link to view the image. Hr block 1040nr Bathrooms This image is too large to be displayed in the current screen. Hr block 1040nr Please click the link to view the image. Hr block 1040nr Recreation Room This image is too large to be displayed in the current screen. Hr block 1040nr Please click the link to view the image. Hr block 1040nr Laundry and Basement This image is too large to be displayed in the current screen. Hr block 1040nr Please click the link to view the image. Hr block 1040nr Garage This image is too large to be displayed in the current screen. Hr block 1040nr Please click the link to view the image. Hr block 1040nr Sporting Equipment This image is too large to be displayed in the current screen. Hr block 1040nr Please click the link to view the image. Hr block 1040nr Men's Clothing This image is too large to be displayed in the current screen. Hr block 1040nr Please click the link to view the image. Hr block 1040nr Women's Clothing This image is too large to be displayed in the current screen. Hr block 1040nr Please click the link to view the image. Hr block 1040nr Children's Clothing This image is too large to be displayed in the current screen. Hr block 1040nr Please click the link to view the image. Hr block 1040nr Jewelry This image is too large to be displayed in the current screen. Hr block 1040nr Please click the link to view the image. Hr block 1040nr Electrical Appliances This image is too large to be displayed in the current screen. Hr block 1040nr Please click the link to view the image. Hr block 1040nr Linens This image is too large to be displayed in the current screen. Hr block 1040nr Please click the link to view the image. Hr block 1040nr Miscellaneous This image is too large to be displayed in the current screen. Hr block 1040nr Please click the link to view the image. Hr block 1040nr Motor Vehicles Schedule 20. Hr block 1040nr Home (Excluding Contents) Note. Hr block 1040nr If you used the entire property as your home, fill out only column (a). Hr block 1040nr If you used part of the property as your home and part of it for business or to produce rental income, you must allocate the entries on lines 2-9 between the personal part (column (a)) and the business/rental part (column (b)). Hr block 1040nr 1. Hr block 1040nr Description of property (Show location and date acquired. Hr block 1040nr )     (a)  Personal Part (b)  Business/Rental Part 2. Hr block 1040nr Cost or other (adjusted) basis of property (from Worksheet A)     3. Hr block 1040nr Insurance or other reimbursement Note. Hr block 1040nr If line 2 is more than line 3, skip line 4. Hr block 1040nr If line 3 is more than line 2, you exclude gain, and the gain is more than you can exclude, see the instructions for line 3 in the Instructions for Form 4684 for the amount to enter. Hr block 1040nr     4. Hr block 1040nr Gain from casualty. Hr block 1040nr If line 3 is more than line 2, enter the difference here and skip lines 5 through 9. Hr block 1040nr But see Next below line 9. Hr block 1040nr     5. Hr block 1040nr Fair market value before casualty     6. Hr block 1040nr Fair market value after casualty     7. Hr block 1040nr Decrease in fair market value. Hr block 1040nr Subtract line 6 from line 5. Hr block 1040nr     8. Hr block 1040nr Enter the smaller of line 2 or line 7 Note for business/rental part. Hr block 1040nr If the property was totally destroyed by casualty, enter on line 8, column (b) the amount from line 2, column (b). Hr block 1040nr     9. Hr block 1040nr Subtract line 3 from line 8. Hr block 1040nr If zero or less, enter -0-. Hr block 1040nr     Next: Transfer the entries from line 1 and lines 2-9, column (a), above to the corresponding lines on Form 4684, Section A. Hr block 1040nr Transfer the entries from line 1 and lines 2-9, column (b), to the corresponding lines on Form 4684, Section B. Hr block 1040nr Worksheet A. Hr block 1040nr Cost or Other (Adjusted) Basis Caution. Hr block 1040nr See the Worksheet A Instructions before you use this worksheet. Hr block 1040nr         (a) Personal Part (b) Business/Rental Part 1. Hr block 1040nr   Enter the purchase price of the home damaged or destroyed. Hr block 1040nr (If you filed Form 2119 when you originally acquired that home to postpone gain on the sale of a previous home before May 7, 1997, enter the adjusted basis of the new home from that Form 2119. Hr block 1040nr ) 1. Hr block 1040nr     2. Hr block 1040nr   Seller paid points for home bought after 1990. Hr block 1040nr Do not include any seller-paid points you already subtracted to arrive at the amount entered on line 1 2. Hr block 1040nr     3. Hr block 1040nr   Subtract line 2 from line 1 3. Hr block 1040nr     4. Hr block 1040nr   Settlement fees or closing costs. Hr block 1040nr (See Settlement costs in Publication 551. Hr block 1040nr ) If line 1 includes the adjusted basis of the new home from Form 2119, skip lines 4a-4g and 5; go to line 6. Hr block 1040nr         a. Hr block 1040nr Abstract and recording fees 4a. Hr block 1040nr       b. Hr block 1040nr Legal fees (including fees for title search and preparing documents) 4b. Hr block 1040nr       c. Hr block 1040nr Survey fees 4c. Hr block 1040nr       d. Hr block 1040nr Title insurance 4d. Hr block 1040nr       e. Hr block 1040nr Transfer or stamp taxes 4e. Hr block 1040nr       f. Hr block 1040nr Amounts that the seller owed that you agreed to pay (back taxes or interest, recording or mortgage fees, and sales commissions) 4f. Hr block 1040nr       g. Hr block 1040nr Other 4g. Hr block 1040nr     5. Hr block 1040nr   Add lines 4a through 4g 5. Hr block 1040nr     6. Hr block 1040nr   Cost of additions and improvements. Hr block 1040nr (See Increases to Basis in Publication 551. Hr block 1040nr ) Do not include any additions and improvements included on line 1 6. Hr block 1040nr     7. Hr block 1040nr   Special tax assessments paid for local improvements, such as streets and sidewalks 7. Hr block 1040nr     8. Hr block 1040nr   Other increases to basis 8. Hr block 1040nr     9. Hr block 1040nr   Add lines 3, 5, 6, 7, and 8 9. Hr block 1040nr     10. Hr block 1040nr   Depreciation allowed or allowable, related to the business use or rental of the home 10. Hr block 1040nr 0   11. Hr block 1040nr   Other decreases to basis (See Decreases to Basis in Publication 551. Hr block 1040nr ) 11. Hr block 1040nr     12. Hr block 1040nr   Add lines 10 and 11 12. Hr block 1040nr     13. Hr block 1040nr   Cost or other (adjusted) basis of home damaged or destroyed. Hr block 1040nr Subtract line 12 from line 9. Hr block 1040nr Enter here and on Schedule 20, line 2 13. Hr block 1040nr     Worksheet A Instructions. Hr block 1040nr If you use Worksheet A to figure the cost or other (adjusted) basis of your home, follow these instructions. Hr block 1040nr DO NOT use this worksheet to determine your basis if you acquired an interest in your home from a decedent who died in 2010 and whose executor filed Form 8939. Hr block 1040nr IF. Hr block 1040nr . Hr block 1040nr . Hr block 1040nr   THEN. Hr block 1040nr . Hr block 1040nr . Hr block 1040nr you inherited your home from a decedent who died either before or after 2010 or from a decedent who died in 2010 and whose executor did not file Form 8939. Hr block 1040nr 1 skip lines 1–4 of the worksheet. Hr block 1040nr 2 find your basis using the rules under Inherited Property in Publication 551. Hr block 1040nr Enter this amount on line 5 of the worksheet. Hr block 1040nr 3 fill out lines 6–13 of the worksheet. Hr block 1040nr you received your home as a gift 1 read Property Received as a Gift in Publication 551 and enter on lines 1 and 3 of the worksheet either the donor's adjusted basis or the home's fair market value at the time of the gift, whichever is appropriate. Hr block 1040nr 2 if you can add any federal gift tax to your basis, enter that amount on line 5 of the worksheet. Hr block 1040nr 3 fill out the rest of the worksheet. Hr block 1040nr you received your home as a trade for other property 1 enter on line 1 of the worksheet the fair market value of the other property at the time of the trade. Hr block 1040nr (But if you received your home as a trade for your previous home before May 7, 1997, and had a gain on the trade that you postponed using Form 2119, enter on line 1 of the worksheet the adjusted basis of the new home from that Form 2119. Hr block 1040nr ) 2 fill out the rest of the worksheet. Hr block 1040nr you built your home 1 add the purchase price of the land and the cost of building the home. Hr block 1040nr Enter that total on line 1 of the worksheet. Hr block 1040nr (However, if you filed a Form 2119 to postpone gain on the sale of a previous home before May 7, 1997, enter on line 1 of the worksheet the adjusted basis of the new home from that Form 2119. Hr block 1040nr ) 2 fill out the rest of the worksheet. Hr block 1040nr you received your home from your spouse after July 18, 1984 1 skip lines 1–4 of the worksheet. Hr block 1040nr 2 enter on line 5 of the worksheet your spouse's cost or other (adjusted) basis in the home just before you received it. Hr block 1040nr 3 fill out lines 6–13 of the worksheet, making adjustments to basis only for events after the transfer. Hr block 1040nr you owned a home jointly with your spouse, who transferred his or her interest in the home to you after July 18, 1984     fill out one worksheet, making adjustments to basis for events both before and after the transfer. Hr block 1040nr   you received your home from your spouse before July 19, 1984 1 skip lines 1–4 of the worksheet. Hr block 1040nr 2 enter on line 5 of the worksheet the home's fair market value at the time you received it. Hr block 1040nr 3 fill out lines 6–13 of the worksheet, making adjustments to basis only for events after the transfer. Hr block 1040nr you owned a home jointly with your spouse, and your spouse transferred his or her interest in the home to you before July 19, 1984 1 fill out a worksheet, lines 1–13, making adjustments to basis only for events before the transfer. Hr block 1040nr 2 multiply the amount on line 13 of that worksheet by 50% (0. Hr block 1040nr 50) to get the adjusted basis of your half-interest at the time of the transfer. Hr block 1040nr 3 multiply the fair market value of the home at the time of the transfer by 50% (0. Hr block 1040nr 50). Hr block 1040nr Generally, this is the basis of the half-interest that your spouse owned. Hr block 1040nr 4 add the amounts from steps 2 and 3 and enter the total on line 5 of a second worksheet. Hr block 1040nr 5 complete lines 6–13 of the second worksheet, making adjustments to basis only for events after the transfer. Hr block 1040nr you owned your home jointly with a nonspouse 1 fill out lines 1–13 of the worksheet. Hr block 1040nr 2 multiply the amount on line 13 by your percentage of ownership to get the adjusted basis of your part-interest. Hr block 1040nr Worksheet A Instructions. Hr block 1040nr (Continued) IF. Hr block 1040nr . Hr block 1040nr . Hr block 1040nr   THEN. Hr block 1040nr . Hr block 1040nr . Hr block 1040nr you owned your home jointly with your spouse who died before 2010 and before the casualty 1 fill out a worksheet, lines 1–13, including adjustments to basis only for events before your spouse's death. Hr block 1040nr 2 multiply the amount on line 13 of that worksheet by 50% (0. Hr block 1040nr 50) to get the adjusted basis of your half-interest on the date of death. Hr block 1040nr 3 figure the basis for the half-interest owned by your spouse. Hr block 1040nr This is one-half of the fair market value on the date of death (or later alternate valuation used for estate or inheritance tax). Hr block 1040nr (The basis in your half will remain one-half of the adjusted basis determined in step 2. Hr block 1040nr ) 4 add the amounts from steps 2 and 3 and enter the total on line 5 of a second worksheet. Hr block 1040nr 5 complete lines 6–13 of the second worksheet, making adjustments to basis only for events after your spouse's death. Hr block 1040nr you owned your home jointly with your spouse who died before 2010 and before the casualty, and your permanent legal home is in a community property state 1 skip lines 1–4 of the worksheet. Hr block 1040nr 2 enter the amount of your basis on line 5 of the worksheet. Hr block 1040nr Generally, this is the fair market value of the home at the time of death. Hr block 1040nr (But see Community Property in Publication 551 for special rules. Hr block 1040nr ) 3 fill out lines 6–13 of the worksheet, making adjustments to basis only for events after your spouse's death. Hr block 1040nr you owned your home jointly with a nonspouse who died before 2010 and before the casualty 1 fill out lines 1–13 of the worksheet, including adjustments to basis only for events before the co-owner's death. Hr block 1040nr 2 multiply the amount on line 13 by your percentage of ownership to get the adjusted basis of your part-interest on the date of death. Hr block 1040nr 3 multiply the fair market value on the date of death (or later alternate valuation used for estate or inheritance tax) by the co-owner's percentage of ownership. Hr block 1040nr This is the basis for the co-owner's part-interest. Hr block 1040nr 4 add the amounts from steps 2 and 3 and enter the total on line 5 of a second worksheet. Hr block 1040nr 5 complete lines 6–13 of the second worksheet, including adjustments to basis only for events after the co-owner's death. Hr block 1040nr your home was ever damaged as a result of a prior casualty 1 on line 8 of the worksheet, enter any amounts you spent to restore the home to its condition before the prior casualty. Hr block 1040nr 2 on line 11 enter: any insurance reimbursements you received (or expect to receive) for the prior loss,  and any deductible casualty losses from prior years not covered by insurance. Hr block 1040nr the person who sold you your home paid points on your loan and you bought your home after 1990 but before April 4, 1994. Hr block 1040nr   on line 2 enter the seller-paid points only if you deducted them as home mortgage interest in the year paid (unless you used the seller-paid points to reduce the amount on line 1). Hr block 1040nr the person who sold you your home paid points on your loan and you bought your home after April 3, 1994   on line 2 enter the seller-paid points even if you did not deduct them (unless you used the seller-paid points to reduce the amount on line 1). Hr block 1040nr you used part of the property as your home and part of it for business or to produce rental income   you must allocate the entries on Worksheet A between the personal part (column (a)) and the business/rental part (column (b)). Hr block 1040nr none of these items apply   fill out the entire worksheet. Hr block 1040nr Prev  Up  Next   Home   More Online Publications