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Hr Block State Taxes

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Hr Block State Taxes

Hr block state taxes 23. Hr block state taxes   Interest Expense Table of Contents Introduction Useful Items - You may want to see: Home Mortgage InterestAmount Deductible Points Mortgage Insurance Premiums Form 1098, Mortgage Interest Statement Investment InterestInvestment Property Allocation of Interest Expense Limit on Deduction Items You Cannot DeductPersonal Interest Allocation of Interest How To ReportMore than one borrower. Hr block state taxes Mortgage proceeds used for business or investment. Hr block state taxes Introduction This chapter discusses what interest expenses you can deduct. Hr block state taxes Interest is the amount you pay for the use of borrowed money. Hr block state taxes The following are types of interest you can deduct as itemized deductions on Schedule A (Form 1040). Hr block state taxes Home mortgage interest, including certain points and mortgage insurance premiums. Hr block state taxes Investment interest. Hr block state taxes This chapter explains these deductions. Hr block state taxes It also explains where to deduct other types of interest and lists some types of interest you cannot deduct. Hr block state taxes Use Table 23-1 to find out where to get more information on various types of interest, including investment interest. Hr block state taxes Useful Items - You may want to see: Publication 936 Home Mortgage Interest Deduction 550 Investment Income and Expenses Home Mortgage Interest Generally, home mortgage interest is any interest you pay on a loan secured by your home (main home or a second home). Hr block state taxes The loan may be a mortgage to buy your home, a second mortgage, a line of credit, or a home equity loan. Hr block state taxes You can deduct home mortgage interest if all the following conditions are met. Hr block state taxes You file Form 1040 and itemize deductions on Schedule A (Form 1040). Hr block state taxes The mortgage is a secured debt on a qualified home in which you have an ownership interest. Hr block state taxes (Generally, your mortgage is a secured debt if you put your home up as collateral to protect the interest of the lender. Hr block state taxes The term “qualified home” means your main home or second home. Hr block state taxes For details, see Publication 936. Hr block state taxes )  Both you and the lender must intend that the loan be repaid. Hr block state taxes Amount Deductible In most cases, you can deduct all of your home mortgage interest. Hr block state taxes How much you can deduct depends on the date of the mortgage, the amount of the mortgage, and how you use the mortgage proceeds. Hr block state taxes Fully deductible interest. Hr block state taxes   If all of your mortgages fit into one or more of the following three categories at all times during the year, you can deduct all of the interest on those mortgages. Hr block state taxes (If any one mortgage fits into more than one category, add the debt that fits in each category to your other debt in the same category. Hr block state taxes )   The three categories are as follows: Mortgages you took out on or before October 13, 1987 (called grandfathered debt). Hr block state taxes Mortgages you took out after October 13, 1987, to buy, build, or improve your home (called home acquisition debt), but only if throughout 2013 these mortgages plus any grandfathered debt totaled $1 million or less ($500,000 or less if married filing separately). Hr block state taxes Mortgages you took out after October 13, 1987, other than to buy, build, or improve your home (called home equity debt), but only if throughout 2013 these mortgages totaled $100,000 or less ($50,000 or less if married filing separately) and totaled no more than the fair market value of your home reduced by (1) and (2). Hr block state taxes The dollar limits for the second and third categories apply to the combined mortgages on your main home and second home. Hr block state taxes   See Part II of Publication 936 for more detailed definitions of grandfathered, home acquisition, and home equity debt. Hr block state taxes    You can use Figure 23-A to check whether your home mortgage interest is fully deductible. Hr block state taxes Figure 23-A. Hr block state taxes Is My Home Mortgage Interest Fully Deductible? Please click here for the text description of the image. Hr block state taxes Figure 23-A. Hr block state taxes Is My Interest Fully Deductible? Limits on deduction. Hr block state taxes   You cannot fully deduct interest on a mortgage that does not fit into any of the three categories listed earlier. Hr block state taxes If this applies to you, see Part II of Publication 936 to figure the amount of interest you can deduct. Hr block state taxes Special Situations This section describes certain items that can be included as home mortgage interest and others that cannot. Hr block state taxes It also describes certain special situations that may affect your deduction. Hr block state taxes Late payment charge on mortgage payment. Hr block state taxes   You can deduct as home mortgage interest a late payment charge if it was not for a specific service performed in connection with your mortgage loan. Hr block state taxes Mortgage prepayment penalty. Hr block state taxes   If you pay off your home mortgage early, you may have to pay a penalty. Hr block state taxes You can deduct that penalty as home mortgage interest provided the penalty is not for a specific service performed or cost incurred in connection with your mortgage loan. Hr block state taxes Sale of home. Hr block state taxes   If you sell your home, you can deduct your home mortgage interest (subject to any limits that apply) paid up to, but not including, the date of sale. Hr block state taxes Example. Hr block state taxes John and Peggy Harris sold their home on May 7. Hr block state taxes Through April 30, they made home mortgage interest payments of $1,220. Hr block state taxes The settlement sheet for the sale of the home showed $50 interest for the 6-day period in May up to, but not including, the date of sale. Hr block state taxes Their mortgage interest deduction is $1,270 ($1,220 + $50). Hr block state taxes Prepaid interest. Hr block state taxes   If you pay interest in advance for a period that goes beyond the end of the tax year, you must spread this interest over the tax years to which it applies. Hr block state taxes You can deduct in each year only the interest that qualifies as home mortgage interest for that year. Hr block state taxes However, there is an exception that applies to points, discussed later. Hr block state taxes Mortgage interest credit. Hr block state taxes   You may be able to claim a mortgage interest credit if you were issued a mortgage credit certificate (MCC) by a state or local government. Hr block state taxes Figure the credit on Form 8396, Mortgage Interest Credit. Hr block state taxes If you take this credit, you must reduce your mortgage interest deduction by the amount of the credit. Hr block state taxes   For more information on the credit, see chapter 37. Hr block state taxes Ministers' and military housing allowance. Hr block state taxes   If you are a minister or a member of the uniformed services and receive a housing allowance that is not taxable, you can still deduct your home mortgage interest. Hr block state taxes Hardest Hit Fund and Emergency Homeowners' Loan Programs. Hr block state taxes   You can use a special method to compute your deduction for mortgage interest and real estate taxes on your main home if you meet the following two conditions. Hr block state taxes You received assistance under: A State Housing Finance Agency (State HFA) Hardest Hit Fund program in which program payments could be used to pay mortgage interest, or An Emergency Homeowners' Loan Program administered by the Department of Housing and Urban Development (HUD) or a state. Hr block state taxes You meet the rules to deduct all of the mortgage interest on your loan and all of the real estate taxes on your main home. Hr block state taxes If you meet these tests, then you can deduct all of the payments you actually made during the year to your mortgage servicer, the State HFA, or HUD on the home mortgage (including the amount shown on box 3 of Form 1098-MA, Mortgage Assistance Payments), but not more than the sum of the amounts shown on Form 1098, Mortgage Interest Statement, in box 1 (mortgage interest received from payer(s) / borrower(s)), box 4 (mortgage insurance premiums) and box 5 (real property taxes). Hr block state taxes However, you are not required to use this special method to compute your deduction for mortgage interest and real estate taxes on your main home. Hr block state taxes Mortgage assistance payments under section 235 of the National Housing Act. Hr block state taxes   If you qualify for mortgage assistance payments for lower-income families under section 235 of the National Housing Act, part or all of the interest on your mortgage may be paid for you. Hr block state taxes You cannot deduct the interest that is paid for you. Hr block state taxes No other effect on taxes. Hr block state taxes   Do not include these mortgage assistance payments in your income. Hr block state taxes Also, do not use these payments to reduce other deductions, such as real estate taxes. Hr block state taxes Divorced or separated individuals. Hr block state taxes   If a divorce or separation agreement requires you or your spouse or former spouse to pay home mortgage interest on a home owned by both of you, the payment of interest may be alimony. Hr block state taxes See the discussion of Payments for jointly-owned home in chapter 18. Hr block state taxes Redeemable ground rents. Hr block state taxes   If you make annual or periodic rental payments on a redeemable ground rent, you can deduct them as mortgage interest. Hr block state taxes   Payments made to end the lease and to buy the lessor's entire interest in the land are not deductible as mortgage interest. Hr block state taxes For more information, see Publication 936. Hr block state taxes Nonredeemable ground rents. Hr block state taxes   Payments on a nonredeemable ground rent are not mortgage interest. Hr block state taxes You can deduct them as rent if they are a business expense or if they are for rental property. Hr block state taxes Reverse mortgages. Hr block state taxes   A reverse mortgage is a loan where the lender pays you (in a lump sum, a monthly advance, a line of credit, or a combination of all three) while you continue to live in your home. Hr block state taxes With a reverse mortgage, you retain title to your home. Hr block state taxes Depending on the plan, your reverse mortgage becomes due with interest when you move, sell your home, reach the end of a pre-selected loan period, or die. Hr block state taxes Because reverse mortgages are considered loan advances and not income, the amount you receive is not taxable. Hr block state taxes Any interest (including original issue discount) accrued on a reverse mortgage is not deductible until the loan is paid in full. Hr block state taxes Your deduction may be limited because a reverse mortgage loan generally is subject to the limit on Home Equity Debt discussed in Publication 936. Hr block state taxes Rental payments. Hr block state taxes   If you live in a house before final settlement on the purchase, any payments you make for that period are rent and not interest. Hr block state taxes This is true even if the settlement papers call them interest. Hr block state taxes You cannot deduct these payments as home mortgage interest. Hr block state taxes Mortgage proceeds invested in tax-exempt securities. Hr block state taxes   You cannot deduct the home mortgage interest on grandfathered debt or home equity debt if you used the proceeds of the mortgage to buy securities or certificates that produce tax-free income. Hr block state taxes “Grandfathered debt” and “home equity debt” are defined earlier under Amount Deductible. Hr block state taxes Refunds of interest. Hr block state taxes   If you receive a refund of interest in the same tax year you paid it, you must reduce your interest expense by the amount refunded to you. Hr block state taxes If you receive a refund of interest you deducted in an earlier year, you generally must include the refund in income in the year you receive it. Hr block state taxes However, you need to include it only up to the amount of the deduction that reduced your tax in the earlier year. Hr block state taxes This is true whether the interest overcharge was refunded to you or was used to reduce the outstanding principal on your mortgage. Hr block state taxes    If you received a refund of interest you overpaid in an earlier year, you generally will receive a Form 1098, Mortgage Interest Statement, showing the refund in box 3. Hr block state taxes For information about Form 1098, see Form 1098, Mortgage Interest Statement , later. Hr block state taxes   For more information on how to treat refunds of interest deducted in earlier years, see Recoveries in chapter 12. Hr block state taxes Points The term “points” is used to describe certain charges paid, or treated as paid, by a borrower to obtain a home mortgage. Hr block state taxes Points may also be called loan origination fees, maximum loan charges, loan discount, or discount points. Hr block state taxes A borrower is treated as paying any points that a home seller pays for the borrower's mortgage. Hr block state taxes See Points paid by the seller , later. Hr block state taxes General Rule You generally cannot deduct the full amount of points in the year paid. Hr block state taxes Because they are prepaid interest, you generally deduct them ratably over the life (term) of the mortgage. Hr block state taxes See Deduction Allowed Ratably , next. Hr block state taxes For exceptions to the general rule, see Deduction Allowed in Year Paid , later. Hr block state taxes Deduction Allowed Ratably If you do not meet the tests listed under Deduction Allowed in Year Paid , later, the loan is not a home improvement loan, or you choose not to deduct your points in full in the year paid, you can deduct the points ratably (equally) over the life of the loan if you meet all the following tests. Hr block state taxes You use the cash method of accounting. Hr block state taxes This means you report income in the year you receive it and deduct expenses in the year you pay them. Hr block state taxes Most individuals use this method. Hr block state taxes Your loan is secured by a home. Hr block state taxes (The home does not need to be your main home. Hr block state taxes ) Your loan period is not more than 30 years. Hr block state taxes If your loan period is more than 10 years, the terms of your loan are the same as other loans offered in your area for the same or longer period. Hr block state taxes Either your loan amount is $250,000 or less, or the number of points is not more than: 4, if your loan period is 15 years or less, or 6, if your loan period is more than 15 years. Hr block state taxes Deduction Allowed in Year Paid You can fully deduct points in the year paid if you meet all the following tests. Hr block state taxes (You can use Figure 23-B as a quick guide to see whether your points are fully deductible in the year paid. Hr block state taxes ) Your loan is secured by your main home. Hr block state taxes (Your main home is the one you ordinarily live in most of the time. Hr block state taxes ) Paying points is an established business practice in the area where the loan was made. Hr block state taxes The points paid were not more than the points generally charged in that area. Hr block state taxes You use the cash method of accounting. Hr block state taxes This means you report income in the year you receive it and deduct expenses in the year you pay them. Hr block state taxes (If you want more information about this method, see Accounting Methods in chapter 1. Hr block state taxes ) The points were not paid in place of amounts that ordinarily are stated separately on the settlement statement, such as appraisal fees, inspection fees, title fees, attorney fees, and property taxes. Hr block state taxes The funds you provided at or before closing, plus any points the seller paid, were at least as much as the points charged. Hr block state taxes The funds you provided are not required to have been applied to the points. Hr block state taxes They can include a down payment, an escrow deposit, earnest money, and other funds you paid at or before closing for any purpose. Hr block state taxes You cannot have borrowed these funds from your lender or mortgage broker. Hr block state taxes You use your loan to buy or build your main home. Hr block state taxes The points were computed as a percentage of the principal amount of the mortgage. Hr block state taxes The amount is clearly shown on the settlement statement (such as the Settlement Statement, Form HUD-1) as points charged for the mortgage. Hr block state taxes The points may be shown as paid from either your funds or the seller's. Hr block state taxes Figure 23-B. Hr block state taxes Are My Points Fully Deductible This Year? Please click here for the text description of the image. Hr block state taxes Figure 23-B. Hr block state taxes Are My Points Fully Deductible This Year? Note. Hr block state taxes If you meet all of these tests, you can choose to either fully deduct the points in the year paid, or deduct them over the life of the loan. Hr block state taxes Home improvement loan. Hr block state taxes   You can also fully deduct in the year paid points paid on a loan to improve your main home, if tests (1) through (6) are met. Hr block state taxes Second home. Hr block state taxes You cannot fully deduct in the year paid points you pay on loans secured by your second home. Hr block state taxes You can deduct these points only over the life of the loan. Hr block state taxes Refinancing. Hr block state taxes   Generally, points you pay to refinance a mortgage are not deductible in full in the year you pay them. Hr block state taxes This is true even if the new mortgage is secured by your main home. Hr block state taxes   However, if you use part of the refinanced mortgage proceeds to improve your main home and you meet the first 6 tests listed under Deduction Allowed in Year Paid , earlier, you can fully deduct the part of the points related to the improvement in the year you paid them with your own funds. Hr block state taxes You can deduct the rest of the points over the life of the loan. Hr block state taxes Example 1. Hr block state taxes In 1998, Bill Fields got a mortgage to buy a home. Hr block state taxes In 2013, Bill refinanced that mortgage with a 15-year $100,000 mortgage loan. Hr block state taxes The mortgage is secured by his home. Hr block state taxes To get the new loan, he had to pay three points ($3,000). Hr block state taxes Two points ($2,000) were for prepaid interest, and one point ($1,000) was charged for services, in place of amounts that ordinarily are stated separately on the settlement statement. Hr block state taxes Bill paid the points out of his private funds, rather than out of the proceeds of the new loan. Hr block state taxes The payment of points is an established practice in the area, and the points charged are not more than the amount generally charged there. Hr block state taxes Bill's first payment on the new loan was due July 1. Hr block state taxes He made six payments on the loan in 2013 and is a cash basis taxpayer. Hr block state taxes Bill used the funds from the new mortgage to repay his existing mortgage. Hr block state taxes Although the new mortgage loan was for Bill's continued ownership of his main home, it was not for the purchase or improvement of that home. Hr block state taxes He cannot deduct all of the points in 2013. Hr block state taxes He can deduct two points ($2,000) ratably over the life of the loan. Hr block state taxes He deducts $67 [($2,000 ÷ 180 months) × 6 payments] of the points in 2013. Hr block state taxes The other point ($1,000) was a fee for services and is not deductible. Hr block state taxes Example 2. Hr block state taxes The facts are the same as in Example 1, except that Bill used $25,000 of the loan proceeds to improve his home and $75,000 to repay his existing mortgage. Hr block state taxes Bill deducts 25% ($25,000 ÷ $100,000) of the points ($2,000) in 2013. Hr block state taxes His deduction is $500 ($2,000 × 25%). Hr block state taxes Bill also deducts the ratable part of the remaining $1,500 ($2,000 − $500) that must be spread over the life of the loan. Hr block state taxes This is $50 [($1,500 ÷ 180 months) × 6 payments] in 2013. Hr block state taxes The total amount Bill deducts in 2013 is $550 ($500 + $50). Hr block state taxes Special Situations This section describes certain special situations that may affect your deduction of points. Hr block state taxes Original issue discount. Hr block state taxes   If you do not qualify to either deduct the points in the year paid or deduct them ratably over the life of the loan, or if you choose not to use either of these methods, the points reduce the issue price of the loan. Hr block state taxes This reduction results in original issue discount, which is discussed in chapter 4 of Publication 535. Hr block state taxes Amounts charged for services. Hr block state taxes   Amounts charged by the lender for specific services connected to the loan are not interest. Hr block state taxes Examples of these charges are: Appraisal fees, Notary fees, and Preparation costs for the mortgage note or deed of trust. Hr block state taxes You cannot deduct these amounts as points either in the year paid or over the life of the mortgage. Hr block state taxes Points paid by the seller. Hr block state taxes   The term “points” includes loan placement fees that the seller pays to the lender to arrange financing for the buyer. Hr block state taxes Treatment by seller. Hr block state taxes   The seller cannot deduct these fees as interest. Hr block state taxes But they are a selling expense that reduces the amount realized by the seller. Hr block state taxes See chapter 15 for information on selling your home. Hr block state taxes Treatment by buyer. Hr block state taxes    The buyer reduces the basis of the home by the amount of the seller-paid points and treats the points as if he or she had paid them. Hr block state taxes If all the tests under Deduction Allowed in Year Paid , earlier, are met, the buyer can deduct the points in the year paid. Hr block state taxes If any of those tests are not met, the buyer deducts the points over the life of the loan. Hr block state taxes   For information about basis, see chapter 13. Hr block state taxes Funds provided are less than points. Hr block state taxes   If you meet all the tests in Deduction Allowed in Year Paid , earlier, except that the funds you provided were less than the points charged to you (test (6)), you can deduct the points in the year paid, up to the amount of funds you provided. Hr block state taxes In addition, you can deduct any points paid by the seller. Hr block state taxes Example 1. Hr block state taxes When you took out a $100,000 mortgage loan to buy your home in December, you were charged one point ($1,000). Hr block state taxes You meet all the tests for deducting points in the year paid, except the only funds you provided were a $750 down payment. Hr block state taxes Of the $1,000 charged for points, you can deduct $750 in the year paid. Hr block state taxes You spread the remaining $250 over the life of the mortgage. Hr block state taxes Example 2. Hr block state taxes The facts are the same as in Example 1, except that the person who sold you your home also paid one point ($1,000) to help you get your mortgage. Hr block state taxes In the year paid, you can deduct $1,750 ($750 of the amount you were charged plus the $1,000 paid by the seller). Hr block state taxes You spread the remaining $250 over the life of the mortgage. Hr block state taxes You must reduce the basis of your home by the $1,000 paid by the seller. Hr block state taxes Excess points. Hr block state taxes   If you meet all the tests in Deduction Allowed in Year Paid , earlier, except that the points paid were more than generally paid in your area (test (3)), you deduct in the year paid only the points that are generally charged. Hr block state taxes You must spread any additional points over the life of the mortgage. Hr block state taxes Mortgage ending early. Hr block state taxes   If you spread your deduction for points over the life of the mortgage, you can deduct any remaining balance in the year the mortgage ends. Hr block state taxes However, if you refinance the mortgage with the same lender, you cannot deduct any remaining balance of spread points. Hr block state taxes Instead, deduct the remaining balance over the term of the new loan. Hr block state taxes    A mortgage may end early due to a prepayment, refinancing, foreclosure, or similar event. Hr block state taxes Example. Hr block state taxes Dan paid $3,000 in points in 2002 that he had to spread out over the 15-year life of the mortgage. Hr block state taxes He deducts $200 points per year. Hr block state taxes Through 2012, Dan has deducted $2,200 of the points. Hr block state taxes Dan prepaid his mortgage in full in 2013. Hr block state taxes He can deduct the remaining $800 of points in 2013. Hr block state taxes Limits on deduction. Hr block state taxes   You cannot fully deduct points paid on a mortgage unless the mortgage fits into one of the categories listed earlier under Fully deductible interest . Hr block state taxes See Publication 936 for details. Hr block state taxes Mortgage Insurance Premiums You can treat amounts you paid during 2013 for qualified mortgage insurance as home mortgage interest. Hr block state taxes The insurance must be in connection with home acquisition debt and the insurance contract must have been issued after 2006. Hr block state taxes Qualified mortgage insurance. Hr block state taxes   Qualified mortgage insurance is mortgage insurance provided by the Department of Veterans Affairs, the Federal Housing Administration, or the Rural Housing Service, and private mortgage insurance (as defined in section 2 of the Homeowners Protection Act of 1998 as in effect on December 20, 2006). Hr block state taxes   Mortgage insurance provided by the Department of Veterans Affairs is commonly known as a funding fee. Hr block state taxes If provided by the Rural Housing Service, it is commonly known as a guarantee fee. Hr block state taxes These fees can be deducted fully in 2013 if the mortgage insurance contract was issued in 2013. Hr block state taxes Contact the mortgage insurance issuer to determine the deductible amount if it is not reported in box 4 of Form 1098. Hr block state taxes Special rules for prepaid mortgage insurance. Hr block state taxes   Generally, if you paid premiums for qualified mortgage insurance that are allocable to periods after the close of the tax year, such premiums are treated as paid in the period to which they are allocated. Hr block state taxes You must allocate the premiums over the shorter of the stated term of the mortgage or 84 months, beginning with the month the insurance was obtained. Hr block state taxes No deduction is allowed for the unamortized balance if the mortgage is satisfied before its term. Hr block state taxes This paragraph does not apply to qualified mortgage insurance provided by the Department of Veterans Affairs or the Rural Housing Service. Hr block state taxes See the Example below. Hr block state taxes Example. Hr block state taxes Ryan purchased a home in May of 2012 and financed the home with a 15-year mortgage. Hr block state taxes Ryan also prepaid all of the $9,240 in private mortgage insurance required at the time of closing in May. Hr block state taxes Since the $9,240 in private mortgage insurance is allocable to periods after 2012, Ryan must allocate the $9,240 over the shorter of the life of the mortgage or 84 months. Hr block state taxes Ryan's adjusted gross income (AGI) for 2012 is $76,000. Hr block state taxes Ryan can deduct $880 ($9,240 ÷ 84 × 8 months) for qualified mortgage insurance premiums in 2012. Hr block state taxes For 2013, Ryan can deduct $1,320 ($9,240 ÷ 84 × 12 months) if his AGI is $100,000 or less. Hr block state taxes In this example, the mortgage insurance premiums are allocated over 84 months, which is shorter than the life of the mortgage of 15 years (180 months). Hr block state taxes Limit on deduction. Hr block state taxes   If your adjusted gross income on Form 1040, line 38, is more than $100,000 ($50,000 if your filing status is married filing separately), the amount of your mortgage insurance premiums that are otherwise deductible is reduced and may be eliminated. Hr block state taxes See Line 13 in the instructions for Schedule A (Form 1040) and complete the Mortgage Insurance Premiums Deduction Worksheet to figure the amount you can deduct. Hr block state taxes If your adjusted gross income is more than $109,000 ($54,500 if married filing separately), you cannot deduct your mortgage insurance premiums. Hr block state taxes Form 1098, Mortgage Interest Statement If you paid $600 or more of mortgage interest (including certain points and mortgage insurance premiums) during the year on any one mortgage, you generally will receive a Form 1098 or a similar statement from the mortgage holder. Hr block state taxes You will receive the statement if you pay interest to a person (including a financial institution or a cooperative housing corporation) in the course of that person's trade or business. Hr block state taxes A governmental unit is a person for purposes of furnishing the statement. Hr block state taxes The statement for each year should be sent to you by January 31 of the following year. Hr block state taxes A copy of this form will also be sent to the IRS. Hr block state taxes The statement will show the total interest you paid during the year, any mortgage insurance premiums you paid, and if you purchased a main home during the year, it also will show the deductible points paid during the year, including seller-paid points. Hr block state taxes However, it should not show any interest that was paid for you by a government agency. Hr block state taxes As a general rule, Form 1098 will include only points that you can fully deduct in the year paid. Hr block state taxes However, certain points not included on Form 1098 also may be deductible, either in the year paid or over the life of the loan. Hr block state taxes See Points , earlier, to determine whether you can deduct points not shown on Form 1098. Hr block state taxes Prepaid interest on Form 1098. Hr block state taxes   If you prepaid interest in 2013 that accrued in full by January 15, 2014, this prepaid interest may be included in box 1 of Form 1098. Hr block state taxes However, you cannot deduct the prepaid amount for January 2014 in 2013. Hr block state taxes (See Prepaid interest , earlier. Hr block state taxes ) You will have to figure the interest that accrued for 2014 and subtract it from the amount in box 1. Hr block state taxes You will include the interest for January 2014 with the other interest you pay for 2014. Hr block state taxes See How To Report , later. Hr block state taxes Refunded interest. Hr block state taxes   If you received a refund of mortgage interest you overpaid in an earlier year, you generally will receive a Form 1098 showing the refund in box 3. Hr block state taxes See Refunds of interest , earlier. Hr block state taxes Mortgage insurance premiums. Hr block state taxes   The amount of mortgage insurance premiums you paid during 2013 may be shown in box 4 of Form 1098. Hr block state taxes See Mortgage Insurance Premiums, earlier. Hr block state taxes Investment Interest This section discusses interest expenses you may be able to deduct as an investor. Hr block state taxes If you borrow money to buy property you hold for investment, the interest you pay is investment interest. Hr block state taxes You can deduct investment interest subject to the limit discussed later. Hr block state taxes However, you cannot deduct interest you incurred to produce tax-exempt income. Hr block state taxes Nor can you deduct interest expenses on straddles. Hr block state taxes Investment interest does not include any qualified home mortgage interest or any interest taken into account in computing income or loss from a passive activity. Hr block state taxes Investment Property Property held for investment includes property that produces interest, dividends, annuities, or royalties not derived in the ordinary course of a trade or business. Hr block state taxes It also includes property that produces gain or loss (not derived in the ordinary course of a trade or business) from the sale or trade of property producing these types of income or held for investment (other than an interest in a passive activity). Hr block state taxes Investment property also includes an interest in a trade or business activity in which you did not materially participate (other than a passive activity). Hr block state taxes Partners, shareholders, and beneficiaries. Hr block state taxes   To determine your investment interest, combine your share of investment interest from a partnership, S corporation, estate, or trust with your other investment interest. Hr block state taxes Allocation of Interest Expense If you borrow money for business or personal purposes as well as for investment, you must allocate the debt among those purposes. Hr block state taxes Only the interest expense on the part of the debt used for investment purposes is treated as investment interest. Hr block state taxes The allocation is not affected by the use of property that secures the debt. Hr block state taxes Limit on Deduction Generally, your deduction for investment interest expense is limited to the amount of your net investment income. Hr block state taxes You can carry over the amount of investment interest that you could not deduct because of this limit to the next tax year. Hr block state taxes The interest carried over is treated as investment interest paid or accrued in that next year. Hr block state taxes You can carry over disallowed investment interest to the next tax year even if it is more than your taxable income in the year the interest was paid or accrued. Hr block state taxes Net Investment Income Determine the amount of your net investment income by subtracting your investment expenses (other than interest expense) from your investment income. Hr block state taxes Investment income. Hr block state taxes    This generally includes your gross income from property held for investment (such as interest, dividends, annuities, and royalties). Hr block state taxes Investment income does not include Alaska Permanent Fund dividends. Hr block state taxes It also does not include qualified dividends or net capital gain unless you choose to include them. Hr block state taxes Choosing to include qualified dividends. Hr block state taxes   Investment income generally does not include qualified dividends, discussed in chapter 8. Hr block state taxes However, you can choose to include all or part of your qualified dividends in investment income. Hr block state taxes   You make this choice by completing Form 4952, line 4g, according to its instructions. Hr block state taxes   If you choose to include any amount of your qualified dividends in investment income, you must reduce your qualified dividends that are eligible for the lower capital gains tax rates by the same amount. Hr block state taxes Choosing to include net capital gain. Hr block state taxes   Investment income generally does not include net capital gain from disposing of investment property (including capital gain distributions from mutual funds). Hr block state taxes However, you can choose to include all or part of your net capital gain in investment income. Hr block state taxes    You make this choice by completing Form 4952, line 4g, according to its instructions. Hr block state taxes   If you choose to include any amount of your net capital gain in investment income, you must reduce your net capital gain that is eligible for the lower capital gains tax rates by the same amount. Hr block state taxes    Before making either choice, consider the overall effect on your tax liability. Hr block state taxes Compare your tax if you make one or both of these choices with your tax if you do not. Hr block state taxes Investment income of child reported on parent's return. Hr block state taxes    Investment income includes the part of your child's interest and dividend income that you choose to report on your return. Hr block state taxes If the child does not have qualified dividends, Alaska Permanent Fund dividends, or capital gain distributions, this is the amount on line 6 of Form 8814, Parents' Election To Report Child's Interest and Dividends. Hr block state taxes Child's qualified dividends. Hr block state taxes   If part of the amount you report is your child's qualified dividends, that part (which is reported on Form 1040, line 9b) generally does not count as investment income. Hr block state taxes However, you can choose to include all or part of it in investment income, as explained under Choosing to include qualified dividends , earlier. Hr block state taxes   Your investment income also includes the amount on Form 8814, line 12 (or, if applicable, the reduced amount figured next under Child's Alaska Permanent Fund dividends). Hr block state taxes Child's Alaska Permanent Fund dividends. Hr block state taxes   If part of the amount you report is your child's Alaska Permanent Fund dividends, that part does not count as investment income. Hr block state taxes To figure the amount of your child's income that you can consider your investment income, start with the amount on Form 8814, line 6. Hr block state taxes Multiply that amount by a percentage that is equal to the Alaska Permanent Fund dividends divided by the total amount on Form 8814, line 4. Hr block state taxes Subtract the result from the amount on Form 8814, line 12. Hr block state taxes Child's capital gain distributions. Hr block state taxes    If part of the amount you report is your child's capital gain distributions, that part (which is reported on Schedule D, line 13, or Form 1040, line 13) generally does not count as investment income. Hr block state taxes However, you can choose to include all or part of it in investment income, as explained in Choosing to include net capital gain , earlier. Hr block state taxes   Your investment income also includes the amount on Form 8814, line 12 (or, if applicable, the reduced amount figured under Child's Alaska Permanent Fund dividends , earlier). Hr block state taxes Investment expenses. Hr block state taxes   Investment expenses are your allowed deductions (other than interest expense) directly connected with the production of investment income. Hr block state taxes Investment expenses that are included as a miscellaneous itemized deduction on Schedule A (Form 1040) are allowable deductions after applying the 2% limit that applies to miscellaneous itemized deductions. Hr block state taxes Use the smaller of: The investment expenses included on Schedule A (Form 1040), line 23, or The amount on Schedule A, line 27. Hr block state taxes Losses from passive activities. Hr block state taxes   Income or expenses that you used in computing income or loss from a passive activity are not included in determining your investment income or investment expenses (including investment interest expense). Hr block state taxes See Publication 925, Passive Activity and At-Risk Rules, for information about passive activities. Hr block state taxes Form 4952 Use Form 4952, Investment Interest Expense Deduction, to figure your deduction for investment interest. Hr block state taxes Exception to use of Form 4952. Hr block state taxes   You do not have to complete Form 4952 or attach it to your return if you meet all of the following tests. Hr block state taxes Your investment interest expense is not more than your investment income from interest and ordinary dividends minus any qualified dividends. Hr block state taxes You do not have any other deductible investment expenses. Hr block state taxes You have no carryover of investment interest expense from 2012. Hr block state taxes If you meet all of these tests, you can deduct all of your investment interest. Hr block state taxes More Information For more information on investment interest, see Interest Expenses in chapter 3 of Publication 550. Hr block state taxes Items You Cannot Deduct Some interest payments are not deductible. Hr block state taxes Certain expenses similar to interest also are not deductible. Hr block state taxes Nondeductible expenses include the following items. Hr block state taxes Personal interest (discussed later). Hr block state taxes Service charges (however, see Other Expenses (Line 23) in chapter 28). Hr block state taxes Annual fees for credit cards. Hr block state taxes Loan fees. Hr block state taxes Credit investigation fees. Hr block state taxes Interest to purchase or carry tax-exempt securities. Hr block state taxes Penalties. Hr block state taxes   You cannot deduct fines and penalties paid to a government for violations of law, regardless of their nature. Hr block state taxes Personal Interest Personal interest is not deductible. Hr block state taxes Personal interest is any interest that is not home mortgage interest, investment interest, business interest, or other deductible interest. Hr block state taxes It includes the following items. Hr block state taxes Interest on car loans (unless you use the car for business). Hr block state taxes Interest on federal, state, or local income tax. Hr block state taxes Finance charges on credit cards, retail installment contracts, and revolving charge accounts incurred for personal expenses. Hr block state taxes Late payment charges by a public utility. Hr block state taxes You may be able to deduct interest you pay on a qualified student loan. Hr block state taxes For details, see Publication 970, Tax Benefits for Education. Hr block state taxes Allocation of Interest If you use the proceeds of a loan for more than one purpose (for example, personal and business), you must allocate the interest on the loan to each use. Hr block state taxes However, you do not have to allocate home mortgage interest if it is fully deductible, regardless of how the funds are used. Hr block state taxes You allocate interest (other than fully deductible home mortgage interest) on a loan in the same way as the loan itself is allocated. Hr block state taxes You do this by tracing disbursements of the debt proceeds to specific uses. Hr block state taxes For details on how to do this, see chapter 4 of Publication 535. Hr block state taxes How To Report You must file Form 1040 to deduct any home mortgage interest expense on your tax return. Hr block state taxes Where you deduct your interest expense generally depends on how you use the loan proceeds. Hr block state taxes See Table 23-1 for a summary of where to deduct your interest expense. Hr block state taxes Home mortgage interest and points. Hr block state taxes   Deduct the home mortgage interest and points reported to you on Form 1098 on Schedule A (Form 1040), line 10. Hr block state taxes If you paid more deductible interest to the financial institution than the amount shown on Form 1098, show the larger deductible amount on line 10. Hr block state taxes Attach a statement explaining the difference and print “See attached” next to line 10. Hr block state taxes    Deduct home mortgage interest that was not reported to you on Form 1098 on Schedule A (Form 1040), line 11. Hr block state taxes If you paid home mortgage interest to the person from whom you bought your home, show that person's name, address, and taxpayer identification number (TIN) on the dotted lines next to line 11. Hr block state taxes The seller must give you this number and you must give the seller your TIN. Hr block state taxes A Form W-9, Request for Taxpayer Identification Number and Certification, can be used for this purpose. Hr block state taxes Failure to meet any of these requirements may result in a $50 penalty for each failure. Hr block state taxes The TIN can be either a social security number, an individual taxpayer identification number (issued by the Internal Revenue Service), or an employer identification number. Hr block state taxes See Social Security Number (SSN) in chapter 1 for more information about TINs. Hr block state taxes    If you can take a deduction for points that were not reported to you on Form 1098, deduct those points on Schedule A (Form 1040), line 12. Hr block state taxes   Deduct mortgage insurance premiums on Schedule A (Form 1040), line 13. Hr block state taxes More than one borrower. Hr block state taxes   If you and at least one other person (other than your spouse if you file a joint return) were liable for and paid interest on a mortgage that was for your home, and the other person received a Form 1098 showing the interest that was paid during the year, attach a statement to your return explaining this. Hr block state taxes Show how much of the interest each of you paid, and give the name and address of the person who received the form. Hr block state taxes Deduct your share of the interest on Schedule A (Form 1040), line 11, and print “See attached” next to the line. Hr block state taxes Also, deduct your share of any qualified mortgage insurance premiums on Schedule A (Form 1040), line 13. Hr block state taxes   Similarly, if you are the payer of record on a mortgage on which there are other borrowers entitled to a deduction for the interest shown on the Form 1098 you received, deduct only your share of the interest on Schedule A (Form 1040), line 10. Hr block state taxes You should let each of the other borrowers know what his or her share is. Hr block state taxes Mortgage proceeds used for business or investment. Hr block state taxes    If your home mortgage interest deduction is limited, but all or part of the mortgage proceeds were used for business, investment, or other deductible activities, see Table 23-1. Hr block state taxes It shows where to deduct the part of your excess interest that is for those activities. Hr block state taxes Investment interest. Hr block state taxes    Deduct investment interest, subject to certain limits discussed in Publication 550, on Schedule A (Form 1040), line 14. Hr block state taxes Amortization of bond premium. Hr block state taxes   There are various ways to treat the premium you pay to buy taxable bonds. Hr block state taxes See Bond Premium Amortization in Publication 550. Hr block state taxes Income-producing rental or royalty interest. Hr block state taxes   Deduct interest on a loan for income-producing rental or royalty property that is not used in your business in Part I of Schedule E (Form 1040). Hr block state taxes Example. Hr block state taxes You rent out part of your home and borrow money to make repairs. Hr block state taxes You can deduct only the interest payment for the rented part in Part I of Schedule E (Form 1040). Hr block state taxes Deduct the rest of the interest payment on Schedule A (Form 1040) if it is deductible home mortgage interest. Hr block state taxes Table 23-1. Hr block state taxes Where To Deduct Your Interest Expense IF you have . Hr block state taxes . Hr block state taxes . Hr block state taxes THEN deduct it on . Hr block state taxes . Hr block state taxes . Hr block state taxes AND for more information go to . Hr block state taxes . Hr block state taxes . Hr block state taxes deductible student loan interest Form 1040, line 33, or Form 1040A, line 18 Publication 970. Hr block state taxes deductible home mortgage interest and points reported on Form 1098 Schedule A (Form 1040), line 10 Publication 936. Hr block state taxes deductible home mortgage interest not reported on Form 1098 Schedule A (Form 1040), line 11 Publication 936. Hr block state taxes deductible points not reported on Form 1098 Schedule A (Form 1040), line 12 Publication 936. Hr block state taxes deductible mortgage insurance premiums Schedule A (Form 1040), line 13 Publication 936. Hr block state taxes deductible investment interest (other than incurred to produce rents or royalties) Schedule A (Form 1040), line 14 Publication 550. Hr block state taxes deductible business interest (non-farm) Schedule C or C-EZ (Form 1040) Publication 535. Hr block state taxes deductible farm business interest Schedule F (Form 1040) Publications 225 and 535. Hr block state taxes deductible interest incurred to produce rents or royalties Schedule E (Form 1040) Publications 527 and 535. Hr block state taxes personal interest not deductible. Hr block state taxes Prev  Up  Next   Home   More Online Publications
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The Hr Block State Taxes

Hr block state taxes Internal Revenue Bulletin:  2010-9  March 1, 2010  Rev. Hr block state taxes Proc. Hr block state taxes 2010-18 Table of Contents SECTION 1. Hr block state taxes PURPOSE SECTION 2. Hr block state taxes BACKGROUND SECTION 3. Hr block state taxes SCOPE SECTION 4. Hr block state taxes APPLICATION SECTION 5. Hr block state taxes EFFECTIVE DATE SECTION 6. Hr block state taxes DRAFTING INFORMATION SECTION 1. Hr block state taxes PURPOSE This revenue procedure provides: (1) limitations on depreciation deductions for owners of passenger automobiles first placed in service by the taxpayer during calendar year 2010, including a separate table of limitations on depreciation deductions for trucks and vans; and (2) the amounts to be included in income by lessees of passenger automobiles first leased by the taxpayer during calendar year 2010, including a separate table of inclusion amounts for lessees of trucks and vans. Hr block state taxes The tables detailing these depreciation limitations and lessee inclusion amounts reflect the automobile price inflation adjustments required by § 280F(d)(7) of the Internal Revenue Code. Hr block state taxes SECTION 2. Hr block state taxes BACKGROUND . Hr block state taxes 01 For owners of passenger automobiles, § 280F(a) imposes dollar limitations on the depreciation deduction for the year the taxpayer places the passenger automobile in service and for each succeeding year. Hr block state taxes Section 280F(d)(7) requires the amounts allowable as depreciation deductions to be increased by a price inflation adjustment amount for passenger automobiles placed in service after 1988. Hr block state taxes The method of calculating this price inflation amount for trucks and vans placed in service in or after calendar year 2003 uses a different CPI “automobile component” (the “new trucks” component) than that used in the price inflation amount calculation for other passenger automobiles (the “new cars” component), resulting in somewhat higher depreciation deductions for trucks and vans. Hr block state taxes This change reflects the higher rate of price inflation for trucks and vans since 1988. Hr block state taxes . Hr block state taxes 02 Section 280F(c) requires a reduction in the deduction allowed to the lessee of a leased passenger automobile. Hr block state taxes The reduction must be substantially equivalent to the limitations on the depreciation deductions imposed on owners of passenger automobiles. Hr block state taxes Under § 1. Hr block state taxes 280F-7(a) of the Income Tax Regulations, this reduction requires a lessee to include in gross income an inclusion amount determined by applying a formula to the amount obtained from a table. Hr block state taxes One table applies to lessees of trucks and vans and another table applies to all other passenger automobiles. Hr block state taxes Each table shows inclusion amounts for a range of fair market values for each taxable year after the passenger automobile is first leased. Hr block state taxes SECTION 3. Hr block state taxes SCOPE . Hr block state taxes 01 The limitations on depreciation deductions in section 4. Hr block state taxes 01(2) of this revenue procedure apply to passenger automobiles (other than leased passenger automobiles) that are placed in service by the taxpayer in calendar year 2010, and continue to apply for each taxable year that the passenger automobile remains in service. Hr block state taxes . Hr block state taxes 02 The tables in section 4. Hr block state taxes 02 of this revenue procedure apply to leased passenger automobiles for which the lease term begins during calendar year 2010. Hr block state taxes Lessees of these passenger automobiles must use these tables to determine the inclusion amount for each taxable year during which the passenger automobile is leased. Hr block state taxes See Rev. Hr block state taxes Proc. Hr block state taxes 2005-13, 2005-1 C. Hr block state taxes B. Hr block state taxes 759, for passenger automobiles first leased before calendar year 2006; Rev. Hr block state taxes Proc. Hr block state taxes 2006-18, 2006-1 C. Hr block state taxes B. Hr block state taxes 645, for passenger automobiles first leased during calendar year 2006; Rev. Hr block state taxes Proc. Hr block state taxes 2007-30, 2007-1 C. Hr block state taxes B. Hr block state taxes 1104, for passenger automobiles first leased during calendar year 2007; Rev. Hr block state taxes Proc. Hr block state taxes 2008-22, 2008-12 I. Hr block state taxes R. Hr block state taxes B. Hr block state taxes 658, for passenger automobiles first leased during calendar year 2008; and Rev. Hr block state taxes Proc. Hr block state taxes 2009-24, 2009-17 I. Hr block state taxes R. Hr block state taxes B. Hr block state taxes 885, for passenger automobiles first leased during calendar year 2009. Hr block state taxes SECTION 4. Hr block state taxes APPLICATION . Hr block state taxes 01 Limitations on Depreciation Deductions for Certain Automobiles. Hr block state taxes (1) Amount of the inflation adjustment. Hr block state taxes (a) Passenger automobiles (other than trucks or vans). Hr block state taxes Under § 280F(d)(7)(B)(i), the automobile price inflation adjustment for any calendar year is the percentage (if any) by which the CPI automobile component for October of the preceding calendar year exceeds the CPI automobile component for October 1987. Hr block state taxes The term “CPI automobile component” is defined in § 280F(d)(7)(B)(ii) as the “automobile component” of the Consumer Price Index for all Urban Consumers published by the Department of Labor. Hr block state taxes The new car component of the CPI was 115. Hr block state taxes 2 for October 1987 and 137. Hr block state taxes 851 for October 2009. Hr block state taxes The October 2009 index exceeded the October 1987 index by 22. Hr block state taxes 651. Hr block state taxes Therefore, the automobile price inflation adjustment for 2010 for passenger automobiles (other than trucks and vans) is 19. Hr block state taxes 66 percent (22. Hr block state taxes 651/115. Hr block state taxes 2 x 100%). Hr block state taxes The dollar limitations in § 280F(a) are multiplied by a factor of 0. Hr block state taxes 1966, and the resulting increases, after rounding to the nearest $100, are added to the 1988 limitations to give the depreciation limitations applicable to passenger automobiles (other than trucks and vans) for calendar year 2010. Hr block state taxes This adjustment applies to all passenger automobiles (other than trucks and vans) that are first placed in service in calendar year 2010. Hr block state taxes (b) Trucks and vans. Hr block state taxes To determine the dollar limitations for trucks and vans first placed in service during calendar year 2010, the new truck component of the CPI is used instead of the new car component. Hr block state taxes The new truck component of the CPI was 112. Hr block state taxes 4 for October 1987 and 140. Hr block state taxes 897 for October 2009. Hr block state taxes The October 2009 index exceeded the October 1987 index by 28. Hr block state taxes 497. Hr block state taxes Therefore, the automobile price inflation adjustment for 2010 for trucks and vans is 25. Hr block state taxes 35 percent (28. Hr block state taxes 497/112. Hr block state taxes 4 x 100%). Hr block state taxes The dollar limitations in § 280F(a) are multiplied by a factor of 0. Hr block state taxes 2535, and the resulting increases, after rounding to the nearest $100, are added to the 1988 limitations to give the depreciation limitations for trucks and vans. Hr block state taxes This adjustment applies to all trucks and vans that are first placed in service in calendar year 2010. Hr block state taxes (2) Amount of the limitation. Hr block state taxes Tables 1 and 2 contain the dollar amount of the depreciation limitation for each taxable year for passenger automobiles a taxpayer places in service in calendar year 2010. Hr block state taxes Use Table 1 for a passenger automobile (other than a truck or van) and Table 2 for a truck or van placed in service in calendar year 2010. Hr block state taxes REV. Hr block state taxes PROC. Hr block state taxes 2010-18 TABLE 1 DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) PLACED IN SERVICE IN CALENDAR YEAR 2010 Tax Year Amount 1st Tax Year $3,060 2nd Tax Year $4,900 3rd Tax Year $2,950 Each Succeeding Year $1,775 REV. Hr block state taxes PROC. Hr block state taxes 2010-18 TABLE 2 DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE IN CALENDAR YEAR 2010 Tax Year Amount 1st Tax Year $3,160 2nd Tax Year $5,100 3rd Tax Year $3,050 Each Succeeding Year $1,875 . Hr block state taxes 02 Inclusions in Income of Lessees of Passenger Automobiles. Hr block state taxes A taxpayer must follow the procedures in § 1. Hr block state taxes 280F-7(a) for determining the inclusion amounts for passenger automobiles first leased in calendar year 2010. Hr block state taxes In applying these procedures, lessees of passenger automobiles other than trucks and vans should use Table 3 of this revenue procedure, while lessees of trucks and vans should use Table 4 of this revenue procedure. Hr block state taxes REV. Hr block state taxes PROC. Hr block state taxes 2010-18 TABLE 3 DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2010 Fair Market Value of Passenger Automobile Tax Year During Lease Over Not Over 1st 2nd 3rd 4th 5th & Later $16,700 $17,000 3 7 10 11 14 17,000 17,500 4 8 13 15 16 17,500 18,000 5 10 16 19 21 18,000 18,500 6 13 18 23 26 18,500 19,000 7 15 22 26 31 19,000 19,500 8 17 25 30 35 19,500 20,000 9 19 29 34 39 20,000 20,500 10 21 32 38 44 20,500 21,000 11 23 35 42 48 21,000 21,500 12 26 38 45 53 21,500 22,000 13 28 41 50 57 22,000 23,000 14 31 46 56 63 23,000 24,000 16 36 52 63 73 24,000 25,000 18 40 59 71 81 25,000 26,000 20 44 66 78 90 26,000 27,000 22 49 71 86 100 27,000 28,000 24 53 78 94 108 28,000 29,000 26 57 85 101 118 29,000 30,000 28 61 92 109 126 30,000 31,000 30 66 97 117 135 31,000 32,000 32 70 104 125 144 32,000 33,000 34 74 111 132 153 33,000 34,000 36 79 117 140 161 34,000 35,000 38 83 123 148 171 35,000 36,000 40 87 130 156 179 36,000 37,000 42 92 136 163 188 37,000 38,000 44 96 143 170 198 38,000 39,000 46 100 149 179 206 39,000 40,000 48 105 155 186 215 40,000 41,000 50 109 162 194 224 41,000 42,000 52 113 169 201 233 42,000 43,000 54 118 174 210 241 43,000 44,000 56 122 181 217 251 44,000 45,000 58 126 188 225 259 45,000 46,000 60 131 194 232 269 46,000 47,000 61 135 201 240 277 47,000 48,000 63 140 207 248 286 48,000 49,000 65 144 213 256 295 49,000 50,000 67 148 220 263 304 50,000 51,000 69 153 226 271 313 51,000 52,000 71 157 232 279 322 52,000 53,000 73 161 239 287 331 53,000 54,000 75 166 245 294 340 54,000 55,000 77 170 252 302 348 55,000 56,000 79 174 258 310 358 56,000 57,000 81 178 265 318 366 57,000 58,000 83 183 271 325 375 58,000 59,000 85 187 278 333 384 59,000 60,000 87 191 284 341 393 60,000 62,000 90 198 294 352 406 62,000 64,000 94 207 306 368 424 64,000 66,000 98 215 320 382 443 66,000 68,000 102 224 332 398 460 68,000 70,000 106 232 346 413 478 70,000 72,000 110 241 358 429 496 72,000 74,000 114 250 371 444 513 74,000 76,000 118 258 384 460 531 76,000 78,000 122 267 396 476 549 78,000 80,000 126 276 409 491 566 80,000 85,000 132 291 432 518 598 85,000 90,000 142 313 464 556 643 90,000 95,000 152 334 497 594 687 95,000 100,000 162 356 528 634 731 100,000 110,000 177 388 577 691 798 110,000 120,000 196 432 641 768 887 120,000 130,000 216 475 705 846 976 130,000 140,000 236 518 770 922 1,065 140,000 150,000 256 561 834 1,000 1,154 150,000 160,000 275 605 898 1,077 1,243 160,000 170,000 295 648 963 1,153 1,333 170,000 180,000 315 691 1,027 1,231 1,421 180,000 190,000 334 735 1,091 1,308 1,510 190,000 200,000 354 778 1,155 1,386 1,599 200,000 210,000 374 821 1,220 1,462 1,688 210,000 220,000 393 865 1,284 1,539 1,777 220,000 230,000 413 908 1,348 1,617 1,866 230,000 240,000 433 951 1,413 1,693 1,956 240,000 and up 453 995 1,476 1,771 2,044 REV. Hr block state taxes PROC. Hr block state taxes 2010-18 TABLE 4 DOLLAR AMOUNTS FOR TRUCKS AND VANS WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2010 Fair Market Value of Passenger Automobile Tax Year During Lease Over Not Over 1st 2nd 3rd 4th 5th & Later 17,000 17,500 3 6 9 10 11 17,500 18,000 4 8 12 14 16 18,000 18,500 5 10 15 18 21 18,500 19,000 6 12 19 22 24 19,000 19,500 7 15 21 26 29 19,500 20,000 8 17 25 29 34 20,000 20,500 9 19 28 33 38 20,500 21,000 10 21 31 37 43 21,000 21,500 11 23 35 41 47 21,500 22,000 12 25 38 45 51 22,000 23,000 13 29 42 51 58 23,000 24,000 15 33 49 58 67 24,000 25,000 17 37 56 66 76 25,000 26,000 19 42 62 73 85 26,000 27,000 21 46 68 82 93 27,000 28,000 23 50 75 89 103 28,000 29,000 25 55 81 97 111 29,000 30,000 27 59 88 104 121 30,000 31,000 29 63 94 113 129 31,000 32,000 31 68 100 120 138 32,000 33,000 33 72 107 127 148 33,000 34,000 35 76 114 135 156 34,000 35,000 37 81 119 143 165 35,000 36,000 39 85 126 151 174 36,000 37,000 41 89 133 158 183 37,000 38,000 43 94 139 166 191 38,000 39,000 45 98 145 174 201 39,000 40,000 47 102 152 182 209 40,000 41,000 49 106 159 189 218 41,000 42,000 51 111 164 198 227 42,000 43,000 53 115 171 205 236 43,000 44,000 55 119 178 213 245 44,000 45,000 57 124 184 220 254 45,000 46,000 59 128 190 228 263 46,000 47,000 60 133 197 235 272 47,000 48,000 62 137 203 244 280 48,000 49,000 64 142 209 251 290 49,000 50,000 66 146 216 259 298 50,000 51,000 68 150 223 266 308 51,000 52,000 70 154 229 275 316 52,000 53,000 72 159 235 282 325 53,000 54,000 74 163 242 290 334 54,000 55,000 76 167 249 297 343 55,000 56,000 78 172 254 305 352 56,000 57,000 80 176 261 313 361 57,000 58,000 82 180 268 320 370 58,000 59,000 84 185 274 328 378 59,000 60,000 86 189 280 336 388 60,000 62,000 89 195 291 347 401 62,000 64,000 93 204 303 363 418 64,000 66,000 97 213 315 379 436 66,000 68,000 101 221 329 394 454 68,000 70,000 105 230 341 410 472 70,000 72,000 109 239 354 424 490 72,000 74,000 113 247 367 440 508 74,000 76,000 117 256 380 455 526 76,000 78,000 121 264 393 471 543 78,000 80,000 125 273 406 486 561 80,000 85,000 131 289 428 513 592 85,000 90,000 141 310 461 552 636 90,000 95,000 151 332 492 591 681 95,000 100,000 161 353 525 629 726 100,000 110,000 176 386 573 686 793 110,000 120,000 195 430 637 763 882 120,000 130,000 215 473 701 841 971 130,000 140,000 235 516 766 918 1,059 140,000 150,000 255 559 830 995 1,149 150,000 160,000 274 603 894 1,072 1,238 160,000 170,000 294 646 958 1,150 1,326 170,000 180,000 314 689 1,023 1,226 1,416 180,000 190,000 333 733 1,087 1,303 1,505 190,000 200,000 353 776 1,151 1,381 1,594 200,000 210,000 373 819 1,216 1,457 1,683 210,000 220,000 392 863 1,280 1,534 1,772 220,000 230,000 412 906 1,344 1,612 1,861 230,000 240,000 432 949 1,409 1,689 1,949 240,000 and up 452 992 1,473 1,766 2,039 SECTION 5. Hr block state taxes EFFECTIVE DATE This revenue procedure applies to passenger automobiles that a taxpayer first places in service or first leases during calendar year 2010. Hr block state taxes SECTION 6. Hr block state taxes DRAFTING INFORMATION The principal author of this revenue procedure is Bernard P. Hr block state taxes Harvey of the Office of Associate Chief Counsel (Income Tax & Accounting). Hr block state taxes For further information regarding this revenue procedure, contact Mr. Hr block state taxes Harvey at (202) 622-4930 (not a toll-free call). Hr block state taxes Prev  Up  Next   Home   More Internal Revenue Bulletins