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Irs 2010 Tax Forms

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Irs 2010 Tax Forms

Irs 2010 tax forms Publication 584SP - Additional Material Table of Contents This image is too large to be displayed in the current screen. Irs 2010 tax forms Please click the link to view the image. Irs 2010 tax forms Pasillo de Entrada (Entrance Hall) This image is too large to be displayed in the current screen. Irs 2010 tax forms Please click the link to view the image. Irs 2010 tax forms Sala de Estar (Living Room) This image is too large to be displayed in the current screen. Irs 2010 tax forms Please click the link to view the image. Irs 2010 tax forms Comedor (Dining Room) This image is too large to be displayed in the current screen. Irs 2010 tax forms Please click the link to view the image. Irs 2010 tax forms Cocina (Kitchen) This image is too large to be displayed in the current screen. Irs 2010 tax forms Please click the link to view the image. Irs 2010 tax forms Cuarto de Trabajo (Den) This image is too large to be displayed in the current screen. Irs 2010 tax forms Please click the link to view the image. Irs 2010 tax forms Dormitorios (Bedrooms) This image is too large to be displayed in the current screen. Irs 2010 tax forms Please click the link to view the image. Irs 2010 tax forms Baños (Bathrooms) This image is too large to be displayed in the current screen. Irs 2010 tax forms Please click the link to view the image. Irs 2010 tax forms Cuarto de Recreación/Juegos (Recreation Room) This image is too large to be displayed in the current screen. Irs 2010 tax forms Please click the link to view the image. Irs 2010 tax forms Lavadero y Sótano (Laundry and Basement) This image is too large to be displayed in the current screen. Irs 2010 tax forms Please click the link to view the image. Irs 2010 tax forms Garaje (Garage) This image is too large to be displayed in the current screen. Irs 2010 tax forms Please click the link to view the image. Irs 2010 tax forms Equipo Deportivo (Sporting Equipment) This image is too large to be displayed in the current screen. Irs 2010 tax forms Please click the link to view the image. Irs 2010 tax forms Ropa de Hombres (Men's Clothing) This image is too large to be displayed in the current screen. Irs 2010 tax forms Please click the link to view the image. Irs 2010 tax forms Ropa de Mujeres (Women's Clothing) This image is too large to be displayed in the current screen. Irs 2010 tax forms Please click the link to view the image. Irs 2010 tax forms Ropa de Niños (Children's Clothing) This image is too large to be displayed in the current screen. Irs 2010 tax forms Please click the link to view the image. Irs 2010 tax forms Joyería (Jewelry) This image is too large to be displayed in the current screen. Irs 2010 tax forms Please click the link to view the image. Irs 2010 tax forms Enseres Eléctricos (Electrical Appliances) This image is too large to be displayed in the current screen. Irs 2010 tax forms Please click the link to view the image. Irs 2010 tax forms Artículos de Hilo (Linens) This image is too large to be displayed in the current screen. Irs 2010 tax forms Please click the link to view the image. Irs 2010 tax forms Artículos Misceláneos (Miscellaneous) This image is too large to be displayed in the current screen. Irs 2010 tax forms Please click the link to view the image. Irs 2010 tax forms vehículos motorizados This image is too large to be displayed in the current screen. Irs 2010 tax forms Please click the link to view the image. Irs 2010 tax forms Hogar (Excluyendo su contenido) Hoja de Trabajo A. Irs 2010 tax forms Costo u Otra Base (Ajustada) Precaución:Vea Instrucciones de la Hoja de Trabajo A antes de usar esta hoja de trabajo. Irs 2010 tax forms         (a) Parte Personal (b) Parte Comercial/de Alquiler 1. Irs 2010 tax forms   Anote el precio de compra de la vivienda dañada o destruida. Irs 2010 tax forms (Si usted presentó el Formulario 2119 cuando en un principio adquirió dicha vivienda para aplazar ganancias provenientes de la venta de una vivienda anterior antes del 7 de mayo de 1997, anote la base ajustada de la vivienda nueva, usando la cantidad que aparece en dicho Formulario 2119). Irs 2010 tax forms 1. Irs 2010 tax forms     2. Irs 2010 tax forms   Puntos pagados por el vendedor para una vivienda comprada después de 1990. Irs 2010 tax forms No incluya puntos pagados por el vendedor que ya restó para llegar a la cantidad anotada en la línea 1 2. Irs 2010 tax forms     3. Irs 2010 tax forms   Reste la línea 2 de la línea 1 3. Irs 2010 tax forms     4. Irs 2010 tax forms   Cargos por liquidación o costos de cierre. Irs 2010 tax forms (Vea Settlement Costs (Costos de Liquidación) en la Publicación 551, en inglés). Irs 2010 tax forms Si la línea 1 incluye la base ajustada de la vivienda nueva del Formulario 2119, ignore las líneas 4a a la 4g y 5; para entonces pasar a la línea 6. Irs 2010 tax forms         a. Irs 2010 tax forms Honorarios por estudios de escritura 4a. Irs 2010 tax forms       b. Irs 2010 tax forms Honorarios legales (incluyendo honorarios por trámites relacionados con la escritura y la preparación de documentos) 4b. Irs 2010 tax forms       c. Irs 2010 tax forms Estudios topográficos 4c. Irs 2010 tax forms       d. Irs 2010 tax forms Seguro de escritura de propietario 4d. Irs 2010 tax forms       e. Irs 2010 tax forms Impuestos de traspaso o de sello 4e. Irs 2010 tax forms       f. Irs 2010 tax forms Cantidades que el vendedor adeudaba y que usted acordó pagar (impuestos atrasados o intereses, costos de registro o cargos hipotecarios y comisiones sobre las ventas) 4f. Irs 2010 tax forms       g. Irs 2010 tax forms Otros gastos 4g. Irs 2010 tax forms     5. Irs 2010 tax forms   Sume las líneas 4a a la 4g 5. Irs 2010 tax forms     6. Irs 2010 tax forms   Costo de ampliaciones y mejoras. Irs 2010 tax forms (Vea Increases to Basis (Aumentos en la Base) en la Publicación 551, en inglés). Irs 2010 tax forms No incluya ninguna de las ampliaciones o mejoras incluidas en la línea 1 6. Irs 2010 tax forms     7. Irs 2010 tax forms   Tasaciones tributarias especiales pagadas por concepto de mejoras locales, tales como calles y aceras o banquetas 7. Irs 2010 tax forms     8. Irs 2010 tax forms   Otros aumentos en la base 8. Irs 2010 tax forms     9. Irs 2010 tax forms   Sume las líneas 3, 5, 6, 7 y 8 9. Irs 2010 tax forms     10. Irs 2010 tax forms   Depreciación (permitida o permisible) relacionada con el uso comercial o alquiler de la vivienda 10. Irs 2010 tax forms 0   11. Irs 2010 tax forms   Otras disminuciones en la base (Vea Decreases to Basis (Disminuciones en la Base) en la Publicación 551, en inglés). Irs 2010 tax forms 11. Irs 2010 tax forms     12. Irs 2010 tax forms   Sume las líneas 10 y 11 12. Irs 2010 tax forms     13. Irs 2010 tax forms   Costo u otra base (ajustada) de la vivienda dañada o destruida. Irs 2010 tax forms Reste la línea 12 de la línea 9. Irs 2010 tax forms Anote dicha cantidad aquí y en la línea 2 del Anexo 20 13. Irs 2010 tax forms     Instrucciones para la Hoja de Trabajo A. Irs 2010 tax forms Si usted usa la Hoja de Trabajo A para calcular el costo u otra base (ajustada) de su vivienda, siga estas instrucciones. Irs 2010 tax forms NO utilice esta hoja de trabajo para determinar el costo de su base si adquirió interés de su vivienda por un difunto que falleció en 2010 y el albacea de su caudal hereditario presentó el Formulario 8939. Irs 2010 tax forms SI. Irs 2010 tax forms . Irs 2010 tax forms . Irs 2010 tax forms   ENTONCES. Irs 2010 tax forms . Irs 2010 tax forms . Irs 2010 tax forms usted heredó su vivienda de un difunto que falleció antes o depués del 2010, o de un difunto que falleció en el 2010 pero la albacea de su caudal hereditario no presentó el Formulario 8939. Irs 2010 tax forms 1 omita las líneas 1 a la 4 de la hoja de trabajo. Irs 2010 tax forms 2 encuentre su base utilizando las reglas bajo Inherited Property (Bienes Heredados) en la Publicación 551, en inglés. Irs 2010 tax forms Anote esta cantidad en la línea 5 de la hoja de trabajo. Irs 2010 tax forms 3 llene las líneas 6 a la 13 de la hoja de trabajo. Irs 2010 tax forms usted recibió su vivienda como un regalo (donación) 1 lea Property Received as Gift (Bienes Recibidos como Regalo (Donación)) en la Publicación 551, en inglés, y anote en las líneas 1 y 3 de la hoja de trabajo la base ajustada del donante o el valor justo de mercado de la vivienda en el momento del regalo (donación), lo que proceda. Irs 2010 tax forms 2 si usted puede sumar algún impuesto federal sobre donaciones a su base, anote esa cantidad en la línea 5 de la hoja de trabajo. Irs 2010 tax forms 3 llene el resto de la hoja de trabajo. Irs 2010 tax forms usted recibió su vivienda como un canje por otra propiedad 1 anote en la línea 1 de la hoja de trabajo el valor justo de mercado de la otra propiedad al tiempo del canje. Irs 2010 tax forms (Pero si usted recibió su vivienda como un canje por su vivienda anterior antes del 7 de mayo de 1997, y tuvo una ganancia en que el canje se aplazó utilizando el Formulario 2119, anote en la línea 1 de la hoja de trabajo la base ajustada de la vivienda nueva que aparece en dicho formulario). Irs 2010 tax forms 2 llene el resto de la hoja de trabajo. Irs 2010 tax forms usted construyó su vivienda 1 sume el precio de compra del terreno y el costo de la construcción de la vivienda. Irs 2010 tax forms Anote ese total en la línea 1 de la hoja de trabajo. Irs 2010 tax forms (Sin embargo, si usted presentó un Formulario 2119 para aplazar ganancias en la venta de una vivienda anterior antes del 7 de mayo de 1997, anote en la línea 1 de la hoja de trabajo la base ajustada de la vivienda nueva que aparece en dicho formulario). Irs 2010 tax forms 2 llene el resto de la hoja de trabajo. Irs 2010 tax forms usted recibió su vivienda de su cónyuge después del 18 de julio de 1984 1 ignore las líneas 1 a la 4 de la hoja de trabajo. Irs 2010 tax forms 2 anote en la línea 5 de la hoja de trabajo el costo u otra base (ajustada) de su cónyuge en la vivienda justo antes de que usted la haya recibido. Irs 2010 tax forms 3 llene las líneas 6 a la 13 de la hoja de trabajo, haciendo ajustes a la base solamente por acontecimientos después del traspaso. Irs 2010 tax forms usted fue dueño de una vivienda conjuntamente con su cónyuge, el cual le traspasó su participación en la misma después del 18 de julio de 1984     llene una hoja de trabajo, haciendo los ajustes a la base por acontecimientos tanto antes como después del traspaso. Irs 2010 tax forms   usted recibió su vivienda de su cónyuge antes del 19 de julio de 1984 1 ignore las líneas 1 a la 4 de la hoja de trabajo. Irs 2010 tax forms 2 anote en la línea 5 de la hoja de trabajo el valor justo de mercado de la vivienda cuando usted la recibió. Irs 2010 tax forms 3 llene las líneas 6 a la 13 de la hoja de trabajo, ajustando la base solamente por acontecimientos después del traspaso. Irs 2010 tax forms usted fue dueño de una vivienda conjuntamente con su cónyuge, el cual le traspasó su participación en la misma antes del 19 de julio de 1984 1 llene una hoja de trabajo, las líneas 1 a la 13, ajustando la base solamente por acontecimientos antes del traspaso. Irs 2010 tax forms 2 multiplique la cantidad de la línea 13 de esa hoja de trabajo por 0. Irs 2010 tax forms 5 para obtener la base ajustada de la mitad de su participación a la hora del traspaso. Irs 2010 tax forms 3 multiplique el valor justo de mercado de la vivienda a la hora del traspaso por 0. Irs 2010 tax forms 5. Irs 2010 tax forms Generalmente, el resultado corresponde a la base de la mitad de la participación de su cónyuge. Irs 2010 tax forms 4 sume las cantidades de los pasos 2 y 3 y anote el total en la línea 5 de una segunda hoja de trabajo. Irs 2010 tax forms 5 complete el resto de la segunda hoja de trabajo, ajustando la base solamente por acontecimientos después del traspaso. Irs 2010 tax forms usted fue dueño de su vivienda conjuntamente con alguien (aparte de cónyuges que presenten una declaración conjunta) 1 llene las líneas 1 a la 13 de la hoja de trabajo. Irs 2010 tax forms 2 multiplique la cantidad de la línea 13 para obtener la base ajustada suya por el porcentaje de su parte de su participación de la vivienda. Irs 2010 tax forms Instrucciones para la Hoja de Trabajo A. Irs 2010 tax forms (Continuación) SI. Irs 2010 tax forms . Irs 2010 tax forms . Irs 2010 tax forms   ENTONCES. Irs 2010 tax forms . Irs 2010 tax forms . Irs 2010 tax forms usted fue dueño de su vivienda conjuntamente con su cónyuge que falleció antes de 2010 y antes de un hecho fortuito 1 llene una hoja de trabajo, las líneas 1 a la 13, incluyendo ajustes a la base solamente por acontecimientos antes del fallecimiento de su cónyuge. Irs 2010 tax forms 2 multiplique la cantidad de la línea 13 de esa hoja de trabajo por 0. Irs 2010 tax forms 5 para obtener la base ajustada de la mitad de su participación a la fecha del fallecimiento. Irs 2010 tax forms 3 calcule la base de la mitad de la participación de su cónyuge. Irs 2010 tax forms Esto corresponde a la mitad del valor justo de mercado en la fecha del fallecimiento (o la valoración alternativa usada posteriormente para propósitos de los impuestos de sucesiones o caudales hereditarios). Irs 2010 tax forms (La base de su mitad seguirá siendo la mitad de la base ajustada determinada en el paso 2). Irs 2010 tax forms 4 sume las cantidades de los pasos 2 y 3 y anote el total en la línea 5 de una segunda hoja de trabajo. Irs 2010 tax forms 5 complete las líneas 6 a la 13 de la segunda hoja de trabajo, ajustando la base solamente por acontecimientos después del fallecimiento de su cónyuge. Irs 2010 tax forms usted fue dueño de su vivienda conjuntamente con su cónyuge que falleció antes de 2010 y antes de un hecho fortuito y, su vivienda permanente está en un estado donde rigen las leyes de la comunidad de bienes matrimoniales 1 ignore las líneas 1 a la 4 de la hoja de trabajo. Irs 2010 tax forms 2 anote la cantidad de su base en la línea 5 de la hoja de trabajo. Irs 2010 tax forms Generalmente, esto corresponde al valor justo de mercado de la vivienda al momento del fallecimiento. Irs 2010 tax forms (No obstante, vea Community Property (Comunidad de Bienes Matrimoniales) en la Publicación 551, en inglés, para reglas especiales). Irs 2010 tax forms 3 llene el resto de la hoja de trabajo, ajustando la base solamente por acontecimientos después del fallecimiento de su cónyuge. Irs 2010 tax forms usted fue dueño de su vivienda conjuntamente con alguien (que no sean cónyuges que presenten la declaración conjunta) que falleció antes de 2010 y antes de un hecho fortuito 1 llene las líneas 1 a la 13 de la hoja de trabajo, incluyendo ajustes a la base solamente por acontecimientos antes del fallecimiento del codueño. Irs 2010 tax forms 2 multiplique la cantidad de la línea 13 por el porcentaje de su parte de su participación de la vivienda para obtener la base ajustada suyo en la fecha del fallecimiento. Irs 2010 tax forms 3 multiplique el valor justo del mercado en la fecha del fallecimiento (o use la valuació alterna usada posteriormente para propositos de los impuestos de sucesiones o caudales hereditarios) por el porcentaje que corresponde a la participación del codueño. Irs 2010 tax forms Ésta es la base para el interés parcial del codueño. Irs 2010 tax forms 4 sume las cantidades de los pasos 2 y 3 y anote el total en la línea 5 de una segunda hoja de trabajo. Irs 2010 tax forms 5 complete las líneas 6 a la 13 de la segunda hoja de trabajo incluyendo ajustes a la base solamente por acontecimientos después del fallecimiento del codueño. Irs 2010 tax forms alguna vez su vivienda sufrió daños debido a un hecho fortuito anterior 1 en la línea 8 de la hoja de trabajo, anote toda cantidad que haya gastado para restaurar la vivienda a su estado original antes del hecho fortuito anterior. Irs 2010 tax forms 2 en la línea 11 anote: todo reembolso de seguros que usted haya recibido (o espera recibir) por la pérdida anterior  y toda pérdida por hecho fortuito deducible de años anteriores no cubierta por  su seguro. Irs 2010 tax forms la persona que le vendió su vivienda pagó puntos sobre su préstamo y usted compró su vivienda después de 1990 pero antes del 4 de abril de 1994   en la línea 2 anote los puntos pagados por el vendedor solamente si usted los dedujo como intereses hipotecarios de la vivienda en el año en que fueron pagados (a no ser que haya utilizado los puntos pagados por el vendedor para reducir la cantidad de la línea 1). Irs 2010 tax forms la persona que le vendió su vivienda pagó puntos sobre su préstamo y usted compró su vivienda después del 3 de abril de 1994   en la línea 2 anote los puntos pagados por el vendedor aun si usted no los dedujo (a no ser que haya utilizado los puntos pagados por el vendedor para reducir la cantidad de la línea 1). Irs 2010 tax forms usted usó parte de la propiedad como su vivienda y parte de ella para propósitos comerciales o para generar ingresos de alquiler   usted debe asignar las anotaciones en la Hoja de Trabajo A entre la parte personal (columna (a)) y la parte comercial/de alquiler (columna (b)). Irs 2010 tax forms no corresponde ninguno de los puntos anteriores   llene completamente la hoja de trabajo. Irs 2010 tax forms Prev  Up  Next   Home   More Online Publications
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The Irs 2010 Tax Forms

Irs 2010 tax forms 3. Irs 2010 tax forms   Rent Expense Table of Contents Introduction Topics - This chapter discusses: RentConditional sales contract. Irs 2010 tax forms Leveraged leases. Irs 2010 tax forms Leveraged leases of limited-use property. Irs 2010 tax forms Taxes on Leased Property Cost of Getting a Lease Improvements by Lessee Capitalizing Rent Expenses Introduction This chapter discusses the tax treatment of rent or lease payments you make for property you use in your business but do not own. Irs 2010 tax forms It also discusses how to treat other kinds of payments you make that are related to your use of this property. Irs 2010 tax forms These include payments you make for taxes on the property. Irs 2010 tax forms Topics - This chapter discusses: The definition of rent Taxes on leased property The cost of getting a lease Improvements by the lessee Capitalizing rent expenses Rent Rent is any amount you pay for the use of property you do not own. Irs 2010 tax forms In general, you can deduct rent as an expense only if the rent is for property you use in your trade or business. Irs 2010 tax forms If you have or will receive equity in or title to the property, the rent is not deductible. Irs 2010 tax forms Unreasonable rent. Irs 2010 tax forms   You cannot take a rental deduction for unreasonable rent. Irs 2010 tax forms Ordinarily, the issue of reasonableness arises only if you and the lessor are related. Irs 2010 tax forms Rent paid to a related person is reasonable if it is the same amount you would pay to a stranger for use of the same property. Irs 2010 tax forms Rent is not unreasonable just because it is figured as a percentage of gross sales. Irs 2010 tax forms For examples of related persons, see Related persons in chapter 2, Publication 544. Irs 2010 tax forms Rent on your home. Irs 2010 tax forms   If you rent your home and use part of it as your place of business, you may be able to deduct the rent you pay for that part. Irs 2010 tax forms You must meet the requirements for business use of your home. Irs 2010 tax forms For more information, see Business use of your home in chapter 1. Irs 2010 tax forms Rent paid in advance. Irs 2010 tax forms   Generally, rent paid in your trade or business is deductible in the year paid or accrued. Irs 2010 tax forms If you pay rent in advance, you can deduct only the amount that applies to your use of the rented property during the tax year. Irs 2010 tax forms You can deduct the rest of your payment only over the period to which it applies. Irs 2010 tax forms Example 1. Irs 2010 tax forms You are a calendar year taxpayer and you leased a building for 5 years beginning July 1. Irs 2010 tax forms Your rent is $12,000 per year. Irs 2010 tax forms You paid the first year's rent ($12,000) on June 30. Irs 2010 tax forms You can deduct only $6,000 (6/12 × $12,000) for the rent that applies to the first year. Irs 2010 tax forms Example 2. Irs 2010 tax forms You are a calendar year taxpayer. Irs 2010 tax forms Last January you leased property for 3 years for $6,000 a year. Irs 2010 tax forms You paid the full $18,000 (3 × $6,000) during the first year of the lease. Irs 2010 tax forms Each year you can deduct only $6,000, the part of the lease that applies to that year. Irs 2010 tax forms Canceling a lease. Irs 2010 tax forms   You generally can deduct as rent an amount you pay to cancel a business lease. Irs 2010 tax forms Lease or purchase. Irs 2010 tax forms   There may be instances in which you must determine whether your payments are for rent or for the purchase of the property. Irs 2010 tax forms You must first determine whether your agreement is a lease or a conditional sales contract. Irs 2010 tax forms Payments made under a conditional sales contract are not deductible as rent expense. Irs 2010 tax forms Conditional sales contract. Irs 2010 tax forms   Whether an agreement is a conditional sales contract depends on the intent of the parties. Irs 2010 tax forms Determine intent based on the provisions of the agreement and the facts and circumstances that exist when you make the agreement. Irs 2010 tax forms No single test, or special combination of tests, always applies. Irs 2010 tax forms However, in general, an agreement may be considered a conditional sales contract rather than a lease if any of the following is true. Irs 2010 tax forms The agreement applies part of each payment toward an equity interest you will receive. Irs 2010 tax forms You get title to the property after you make a stated amount of required payments. Irs 2010 tax forms The amount you must pay to use the property for a short time is a large part of the amount you would pay to get title to the property. Irs 2010 tax forms You pay much more than the current fair rental value of the property. Irs 2010 tax forms You have an option to buy the property at a nominal price compared to the value of the property when you may exercise the option. Irs 2010 tax forms Determine this value when you make the agreement. Irs 2010 tax forms You have an option to buy the property at a nominal price compared to the total amount you have to pay under the agreement. Irs 2010 tax forms The agreement designates part of the payments as interest, or that part is easy to recognize as interest. Irs 2010 tax forms Leveraged leases. Irs 2010 tax forms   Leveraged lease transactions may not be considered leases. Irs 2010 tax forms Leveraged leases generally involve three parties: a lessor, a lessee, and a lender to the lessor. Irs 2010 tax forms Usually the lease term covers a large part of the useful life of the leased property, and the lessee's payments to the lessor are enough to cover the lessor's payments to the lender. Irs 2010 tax forms   If you plan to take part in what appears to be a leveraged lease, you may want to get an advance ruling. Irs 2010 tax forms Revenue Procedure 2001-28 on page 1156 of Internal Revenue Bulletin 2001-19 contains the guidelines the IRS will use to determine if a leveraged lease is a lease for federal income tax purposes. Irs 2010 tax forms Revenue Procedure 2001-29 on page 1160 of the same Internal Revenue Bulletin provides the information required to be furnished in a request for an advance ruling on a leveraged lease transaction. Irs 2010 tax forms Internal Revenue Bulletin 2001-19 is available at www. Irs 2010 tax forms irs. Irs 2010 tax forms gov/pub/irs-irbs/irb01-19. Irs 2010 tax forms pdf. Irs 2010 tax forms   In general, Revenue Procedure 2001-28 provides that, for advance ruling purposes only, the IRS will consider the lessor in a leveraged lease transaction to be the owner of the property and the transaction to be a valid lease if all the factors in the revenue procedure are met, including the following. Irs 2010 tax forms The lessor must maintain a minimum unconditional “at risk” equity investment in the property (at least 20% of the cost of the property) during the entire lease term. Irs 2010 tax forms The lessee may not have a contractual right to buy the property from the lessor at less than fair market value when the right is exercised. Irs 2010 tax forms The lessee may not invest in the property, except as provided by Revenue Procedure 2001-28. Irs 2010 tax forms The lessee may not lend any money to the lessor to buy the property or guarantee the loan used by the lessor to buy the property. Irs 2010 tax forms The lessor must show that it expects to receive a profit apart from the tax deductions, allowances, credits, and other tax attributes. Irs 2010 tax forms   The IRS may charge you a user fee for issuing a tax ruling. Irs 2010 tax forms For more information, see Revenue Procedure 2014-1 available at  www. Irs 2010 tax forms irs. Irs 2010 tax forms gov/irb/2014-1_IRB/ar05. Irs 2010 tax forms html. Irs 2010 tax forms Leveraged leases of limited-use property. Irs 2010 tax forms   The IRS will not issue advance rulings on leveraged leases of so-called limited-use property. Irs 2010 tax forms Limited-use property is property not expected to be either useful to or usable by a lessor at the end of the lease term except for continued leasing or transfer to a lessee. Irs 2010 tax forms See Revenue Procedure 2001-28 for examples of limited-use property and property that is not limited-use property. Irs 2010 tax forms Leases over $250,000. Irs 2010 tax forms   Special rules are provided for certain leases of tangible property. Irs 2010 tax forms The rules apply if the lease calls for total payments of more than $250,000 and any of the following apply. Irs 2010 tax forms Rents increase during the lease. Irs 2010 tax forms Rents decrease during the lease. Irs 2010 tax forms Rents are deferred (rent is payable after the end of the calendar year following the calendar year in which the use occurs and the rent is allocated). Irs 2010 tax forms Rents are prepaid (rent is payable before the end of the calendar year preceding the calendar year in which the use occurs and the rent is allocated). Irs 2010 tax forms These rules do not apply if your lease specifies equal amounts of rent for each month in the lease term and all rent payments are due in the calendar year to which the rent relates (or in the preceding or following calendar year). Irs 2010 tax forms   Generally, if the special rules apply, you must use an accrual method of accounting (and time value of money principles) for your rental expenses, regardless of your overall method of accounting. Irs 2010 tax forms In addition, in certain cases in which the IRS has determined that a lease was designed to achieve tax avoidance, you must take rent and stated or imputed interest into account under a constant rental accrual method in which the rent is treated as accruing ratably over the entire lease term. Irs 2010 tax forms For details, see section 467 of the Internal Revenue Code. Irs 2010 tax forms Taxes on Leased Property If you lease business property, you can deduct as additional rent any taxes you have to pay to or for the lessor. Irs 2010 tax forms When you can deduct these taxes as additional rent depends on your accounting method. Irs 2010 tax forms Cash method. Irs 2010 tax forms   If you use the cash method of accounting, you can deduct the taxes as additional rent only for the tax year in which you pay them. Irs 2010 tax forms Accrual method. Irs 2010 tax forms   If you use an accrual method of accounting, you can deduct taxes as additional rent for the tax year in which you can determine all the following. Irs 2010 tax forms That you have a liability for taxes on the leased property. Irs 2010 tax forms How much the liability is. Irs 2010 tax forms That economic performance occurred. Irs 2010 tax forms   The liability and amount of taxes are determined by state or local law and the lease agreement. Irs 2010 tax forms Economic performance occurs as you use the property. Irs 2010 tax forms Example 1. Irs 2010 tax forms Oak Corporation is a calendar year taxpayer that uses an accrual method of accounting. Irs 2010 tax forms Oak leases land for use in its business. Irs 2010 tax forms Under state law, owners of real property become liable (incur a lien on the property) for real estate taxes for the year on January 1 of that year. Irs 2010 tax forms However, they do not have to pay these taxes until July 1 of the next year (18 months later) when tax bills are issued. Irs 2010 tax forms Under the terms of the lease, Oak becomes liable for the real estate taxes in the later year when the tax bills are issued. Irs 2010 tax forms If the lease ends before the tax bill for a year is issued, Oak is not liable for the taxes for that year. Irs 2010 tax forms Oak cannot deduct the real estate taxes as rent until the tax bill is issued. Irs 2010 tax forms This is when Oak's liability under the lease becomes fixed. Irs 2010 tax forms Example 2. Irs 2010 tax forms The facts are the same as in Example 1 except that, according to the terms of the lease, Oak becomes liable for the real estate taxes when the owner of the property becomes liable for them. Irs 2010 tax forms As a result, Oak will deduct the real estate taxes as rent on its tax return for the earlier year. Irs 2010 tax forms This is the year in which Oak's liability under the lease becomes fixed. Irs 2010 tax forms Cost of Getting a Lease You may either enter into a new lease with the lessor of the property or get an existing lease from another lessee. Irs 2010 tax forms Very often when you get an existing lease from another lessee, you must pay the previous lessee money to get the lease, besides having to pay the rent on the lease. Irs 2010 tax forms If you get an existing lease on property or equipment for your business, you generally must amortize any amount you pay to get that lease over the remaining term of the lease. Irs 2010 tax forms For example, if you pay $10,000 to get a lease and there are 10 years remaining on the lease with no option to renew, you can deduct $1,000 each year. Irs 2010 tax forms The cost of getting an existing lease of tangible property is not subject to the amortization rules for section 197 intangibles discussed in chapter 8. Irs 2010 tax forms Option to renew. Irs 2010 tax forms   The term of the lease for amortization includes all renewal options plus any other period for which you and the lessor reasonably expect the lease to be renewed. Irs 2010 tax forms However, this applies only if less than 75% of the cost of getting the lease is for the term remaining on the purchase date (not including any period for which you may choose to renew, extend, or continue the lease). Irs 2010 tax forms Allocate the lease cost to the original term and any option term based on the facts and circumstances. Irs 2010 tax forms In some cases, it may be appropriate to make the allocation using a present value computation. Irs 2010 tax forms For more information, see Regulations section 1. Irs 2010 tax forms 178-1(b)(5). Irs 2010 tax forms Example 1. Irs 2010 tax forms You paid $10,000 to get a lease with 20 years remaining on it and two options to renew for 5 years each. Irs 2010 tax forms Of this cost, you paid $7,000 for the original lease and $3,000 for the renewal options. Irs 2010 tax forms Because $7,000 is less than 75% of the total $10,000 cost of the lease (or $7,500), you must amortize the $10,000 over 30 years. Irs 2010 tax forms That is the remaining life of your present lease plus the periods for renewal. Irs 2010 tax forms Example 2. Irs 2010 tax forms The facts are the same as in Example 1, except that you paid $8,000 for the original lease and $2,000 for the renewal options. Irs 2010 tax forms You can amortize the entire $10,000 over the 20-year remaining life of the original lease. Irs 2010 tax forms The $8,000 cost of getting the original lease was not less than 75% of the total cost of the lease (or $7,500). Irs 2010 tax forms Cost of a modification agreement. Irs 2010 tax forms   You may have to pay an additional “rent” amount over part of the lease period to change certain provisions in your lease. Irs 2010 tax forms You must capitalize these payments and amortize them over the remaining period of the lease. Irs 2010 tax forms You cannot deduct the payments as additional rent, even if they are described as rent in the agreement. Irs 2010 tax forms Example. Irs 2010 tax forms You are a calendar year taxpayer and sign a 20-year lease to rent part of a building starting on January 1. Irs 2010 tax forms However, before you occupy it, you decide that you really need less space. Irs 2010 tax forms The lessor agrees to reduce your rent from $7,000 to $6,000 per year and to release the excess space from the original lease. Irs 2010 tax forms In exchange, you agree to pay an additional rent amount of $3,000, payable in 60 monthly installments of $50 each. Irs 2010 tax forms   You must capitalize the $3,000 and amortize it over the 20-year term of the lease. Irs 2010 tax forms Your amortization deduction each year will be $150 ($3,000 ÷ 20). Irs 2010 tax forms You cannot deduct the $600 (12 × $50) that you will pay during each of the first 5 years as rent. Irs 2010 tax forms Commissions, bonuses, and fees. Irs 2010 tax forms   Commissions, bonuses, fees, and other amounts you pay to get a lease on property you use in your business are capital costs. Irs 2010 tax forms You must amortize these costs over the term of the lease. Irs 2010 tax forms Loss on merchandise and fixtures. Irs 2010 tax forms   If you sell at a loss merchandise and fixtures that you bought solely to get a lease, the loss is a cost of getting the lease. Irs 2010 tax forms You must capitalize the loss and amortize it over the remaining term of the lease. Irs 2010 tax forms Improvements by Lessee If you add buildings or make other permanent improvements to leased property, depreciate the cost of the improvements using the modified accelerated cost recovery system (MACRS). Irs 2010 tax forms Depreciate the property over its appropriate recovery period. Irs 2010 tax forms You cannot amortize the cost over the remaining term of the lease. Irs 2010 tax forms If you do not keep the improvements when you end the lease, figure your gain or loss based on your adjusted basis in the improvements at that time. Irs 2010 tax forms For more information, see the discussion of MACRS in Publication 946, How To Depreciate Property. Irs 2010 tax forms Assignment of a lease. Irs 2010 tax forms   If a long-term lessee who makes permanent improvements to land later assigns all lease rights to you for money and you pay the rent required by the lease, the amount you pay for the assignment is a capital investment. Irs 2010 tax forms If the rental value of the leased land increased since the lease began, part of your capital investment is for that increase in the rental value. Irs 2010 tax forms The rest is for your investment in the permanent improvements. Irs 2010 tax forms   The part that is for the increased rental value of the land is a cost of getting a lease, and you amortize it over the remaining term of the lease. Irs 2010 tax forms You can depreciate the part that is for your investment in the improvements over the recovery period of the property as discussed earlier, without regard to the lease term. Irs 2010 tax forms Capitalizing Rent Expenses Under the uniform capitalization rules, you must capitalize the direct costs and part of the indirect costs for certain production or resale activities. Irs 2010 tax forms Include these costs in the basis of property you produce or acquire for resale, rather than claiming them as a current deduction. Irs 2010 tax forms You recover the costs through depreciation, amortization, or cost of goods sold when you use, sell, or otherwise dispose of the property. Irs 2010 tax forms Indirect costs include amounts incurred for renting or leasing equipment, facilities, or land. Irs 2010 tax forms Uniform capitalization rules. Irs 2010 tax forms   You may be subject to the uniform capitalization rules if you do any of the following, unless the property is produced for your use other than in a business or an activity carried on for profit. Irs 2010 tax forms Produce real property or tangible personal property. Irs 2010 tax forms For this purpose, tangible personal property includes a film, sound recording, video tape, book, or similar property. Irs 2010 tax forms Acquire property for resale. Irs 2010 tax forms However, these rules do not apply to the following property. Irs 2010 tax forms Personal property you acquire for resale if your average annual gross receipts are $10 million or less for the 3 prior tax years. Irs 2010 tax forms Property you produce if you meet either of the following conditions. Irs 2010 tax forms Your indirect costs of producing the property are $200,000 or less. Irs 2010 tax forms You use the cash method of accounting and do not account for inventories. Irs 2010 tax forms Example 1. Irs 2010 tax forms You rent construction equipment to build a storage facility. Irs 2010 tax forms If you are subject to the uniform capitalization rules, you must capitalize as part of the cost of the building the rent you paid for the equipment. Irs 2010 tax forms You recover your cost by claiming a deduction for depreciation on the building. Irs 2010 tax forms Example 2. Irs 2010 tax forms You rent space in a facility to conduct your business of manufacturing tools. Irs 2010 tax forms If you are subject to the uniform capitalization rules, you must include the rent you paid to occupy the facility in the cost of the tools you produce. Irs 2010 tax forms More information. Irs 2010 tax forms   For more information on these rules, see Uniform Capitalization Rules in Publication 538 and the regulations under Internal Revenue Code section 263A. Irs 2010 tax forms Prev  Up  Next   Home   More Online Publications