Filing Your Taxes Online is Fast, Easy and Secure.
Start now and receive your tax refund in as little as 7 days.

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

Find tax credits for everything from school tuition to buying a hybri

3. E-File for FREE

E-file free with direct deposit to get your refund in as few as 7 days.

Filing your taxes with paper mail can be difficult and it could take weeks for your refund to arrive. IRS e-file is easy, fast and secure. There is no paperwork going to the IRS so tax refunds can be processed in as little as 7 days with direct deposit. As you prepare your taxes online, you can see your tax refund in real time.

FREE audit support and representation from an enrolled agent – NEW and only from H&R Block

Turbotax Military Members

Free Ez FileFree Online Tax Return2012 Ez Tax FormFree Tax Filing 2013Free Tax PreparationFile State Federal Taxes Free2013 1040ez Form InstructionsDownload 1040ez FormHow Do I Amend My Tax ReturnFree 2012 Tax Software DownloadState Income Tax FormFree Tax Filing Back TaxesHow Do I Amend My 2013 Tax ReturnState Tax Return 2013File Form 1040x1040nr E File1040 Ez OnlineFederal Amended Tax FormsIrs 2009How To File An Amended Tax Return For 20132011 1040ezFree Irs And State Tax FilingFederal Tax Tables 2011Www.irs Tax Form 1040ez For 20121040 Ez OnlineFree 2007 Tax Software DownloadState Tax Extension2010 Tax Returns OnlineCan You E File An Amended Return1040x 2012Free 1040x Forms140 Ez FormH&r Block Military TaxRee 1040 Ez Tax Filing OnlineH&r Tax SoftwareFile 1040ez FreeWhere To File 2012 Taxes OnlineForm 10402010 Online Tax FilingState Tax Return Online

Turbotax Military Members

Turbotax military members Publication 530 - Additional Material Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

Prime Contract Outreach Information

The IRS Small Business Program Office from time to time hosts a Prime Contract Network Opportunity Session. The purpose of these events are to assist small businesses in meeting with the IRS Prime and Alliance partners to discuss potential subcontracting opportunities available under the IRS Prime Systems Integration Contract, TIRNO-99-D-00001. The contractor awarded this contract was Computer Sciences Corporation. Their Prime Alliance partners are IBM Corporation, Unisys Corporation, SAIC, Northrop Grumman Information Technology, and BearingPoint. More information on the contract itself can be found at http://www.irs.gov. Click on Business Opportunities, then click IRS Procurement, click Contracts, and then scroll down to IRS Prime Contract Network Opportunity Session.

At this time and in the foreseeable future, all work done under the IRS Prime Contract is being performed in the Washington, DC metro area.

Briefings from the IRS Prime Contractor and its Alliance partners can be found below. The briefing charts detail what each of the companies are working on and what type of subcontracting opportunities are available.

Page Last Reviewed or Updated: 16-Apr-2013

The Turbotax Military Members

Turbotax military members 5. Turbotax military members   Personal Use of Dwelling Unit (Including Vacation Home) Table of Contents Dividing Expenses Dwelling Unit Used as a HomeMain home. Turbotax military members Shared equity financing agreement. Turbotax military members Donation of use of the property. Turbotax military members Examples. Turbotax military members Days used for repairs and maintenance. Turbotax military members Days used as a main home before or after renting. Turbotax military members Reporting Income and DeductionsNot used as a home. Turbotax military members Used as a home but rented less than 15 days. Turbotax military members Used as a home and rented 15 days or more. Turbotax military members If you have any personal use of a dwelling unit (including a vacation home) that you rent, you must divide your expenses between rental use and personal use. Turbotax military members In general, your rental expenses will be no more than your total expenses multiplied by a fraction; the denominator of which is the total number of days the dwelling unit is used and the numerator of which is the total number of days actually rented at a fair rental price. Turbotax military members Only your rental expenses may deducted on Schedule E (Form 1040). Turbotax military members Some of your personal expenses may be deductible if you itemize your deductions on Schedule A (Form 1040). Turbotax military members You must also determine if the dwelling unit is considered a home. Turbotax military members The amount of rental expenses that you can deduct may be limited if the dwelling unit is considered a home. Turbotax military members Whether a dwelling unit is considered a home depends on how many days during the year are considered to be days of personal use. Turbotax military members There is a special rule if you used the dwelling unit as a home and you rented it for less than 15 days during the year. Turbotax military members Dwelling unit. Turbotax military members   A dwelling unit includes a house, apartment, condominium, mobile home, boat, vacation home, or similar property. Turbotax military members It also includes all structures or other property belonging to the dwelling unit. Turbotax military members A dwelling unit has basic living accommodations, such as sleeping space, a toilet, and cooking facilities. Turbotax military members   A dwelling unit does not include property (or part of the property) used solely as a hotel, motel, inn, or similar establishment. Turbotax military members Property is used solely as a hotel, motel, inn, or similar establishment if it is regularly available for occupancy by paying customers and is not used by an owner as a home during the year. Turbotax military members Example. Turbotax military members You rent a room in your home that is always available for short-term occupancy by paying customers. Turbotax military members You do not use the room yourself and you allow only paying customers to use the room. Turbotax military members This room is used solely as a hotel, motel, inn, or similar establishment and is not a dwelling unit. Turbotax military members Dividing Expenses If you use a dwelling unit for both rental and personal purposes, divide your expenses between the rental use and the personal use based on the number of days used for each purpose. Turbotax military members When dividing your expenses, follow these rules. Turbotax military members Any day that the unit is rented at a fair rental price is a day of rental use even if you used the unit for personal purposes that day. Turbotax military members (This rule does not apply when determining whether you used the unit as a home. Turbotax military members ) Any day that the unit is available for rent but not actually rented is not a day of rental use. Turbotax military members Fair rental price. Turbotax military members   A fair rental price for your property generally is the amount of rent that a person who is not related to you would be willing to pay. Turbotax military members The rent you charge is not a fair rental price if it is substantially less than the rents charged for other properties that are similar to your property in your area. Turbotax military members   Ask yourself the following questions when comparing another property with yours. Turbotax military members Is it used for the same purpose? Is it approximately the same size? Is it in approximately the same condition? Does it have similar furnishings? Is it in a similar location? If any of the answers are no, the properties probably are not similar. Turbotax military members Example. Turbotax military members Your beach cottage was available for rent from June 1 through August 31 (92 days). Turbotax military members Except for the first week in August (7 days), when you were unable to find a renter, you rented the cottage at a fair rental price during that time. Turbotax military members The person who rented the cottage for July allowed you to use it over the weekend (2 days) without any reduction in or refund of rent. Turbotax military members Your family also used the cottage during the last 2 weeks of May (14 days). Turbotax military members The cottage was not used at all before May 17 or after August 31. Turbotax military members You figure the part of the cottage expenses to treat as rental expenses as follows. Turbotax military members The cottage was used for rental a total of 85 days (92 − 7). Turbotax military members The days it was available for rent but not rented (7 days) are not days of rental use. Turbotax military members The July weekend (2 days) you used it is rental use because you received a fair rental price for the weekend. Turbotax military members You used the cottage for personal purposes for 14 days (the last 2 weeks in May). Turbotax military members The total use of the cottage was 99 days (14 days personal use + 85 days rental use). Turbotax military members Your rental expenses are 85/99 (86%) of the cottage expenses. Turbotax military members Note. Turbotax military members When determining whether you used the cottage as a home, the July weekend (2 days) you used it is considered personal use even though you received a fair rental price for the weekend. Turbotax military members Therefore, you had 16 days of personal use and 83 days of rental use for this purpose. Turbotax military members Because you used the cottage for personal purposes more than 14 days and more than 10% of the days of rental use (8 days), you used it as a home. Turbotax military members If you have a net loss, you may not be able to deduct all of the rental expenses. Turbotax military members See Dwelling Unit Used as a Home, next. Turbotax military members Dwelling Unit Used as a Home If you use a dwelling unit for both rental and personal purposes, the tax treatment of the rental expenses you figured earlier under Dividing Expenses and rental income depends on whether you are considered to be using the dwelling unit as a home. Turbotax military members You use a dwelling unit as a home during the tax year if you use it for personal purposes more than the greater of: 14 days, or 10% of the total days it is rented to others at a fair rental price. Turbotax military members See What is a day of personal use , later. Turbotax military members If a dwelling unit is used for personal purposes on a day it is rented at a fair rental price (discussed earlier), do not count that day as a day of rental use in applying (2) above. Turbotax military members Instead, count it as a day of personal use in applying both (1) and (2) above. Turbotax military members What is a day of personal use?   A day of personal use of a dwelling unit is any day that the unit is used by any of the following persons. Turbotax military members You or any other person who owns an interest in it, unless you rent it to another owner as his or her main home under a shared equity financing agreement (defined later). Turbotax military members However, see Days used as a main home before or after renting , later. Turbotax military members A member of your family or a member of the family of any other person who owns an interest in it, unless the family member uses the dwelling unit as his or her main home and pays a fair rental price. Turbotax military members Family includes only your spouse, brothers and sisters, half-brothers and half-sisters, ancestors (parents, grandparents, etc. Turbotax military members ), and lineal descendants (children, grandchildren, etc. Turbotax military members ). Turbotax military members Anyone under an arrangement that lets you use some other dwelling unit. Turbotax military members Anyone at less than a fair rental price. Turbotax military members Main home. Turbotax military members   If the other person or member of the family in (1) or (2) above has more than one home, his or her main home is ordinarily the one he or she lived in most of the time. Turbotax military members Shared equity financing agreement. Turbotax military members   This is an agreement under which two or more persons acquire undivided interests for more than 50 years in an entire dwelling unit, including the land, and one or more of the co-owners is entitled to occupy the unit as his or her main home upon payment of rent to the other co-owner or owners. Turbotax military members Donation of use of the property. Turbotax military members   You use a dwelling unit for personal purposes if: You donate the use of the unit to a charitable organization, The organization sells the use of the unit at a fund-raising event, and The “purchaser” uses the unit. Turbotax military members Examples. Turbotax military members   The following examples show how to determine if you have days of personal use. Turbotax military members Example 1. Turbotax military members You and your neighbor are co-owners of a condominium at the beach. Turbotax military members Last year, you rented the unit to vacationers whenever possible. Turbotax military members The unit was not used as a main home by anyone. Turbotax military members Your neighbor used the unit for 2 weeks last year; you did not use it at all. Turbotax military members Because your neighbor has an interest in the unit, both of you are considered to have used the unit for personal purposes during those 2 weeks. Turbotax military members Example 2. Turbotax military members You and your neighbors are co-owners of a house under a shared equity financing agreement. Turbotax military members Your neighbors live in the house and pay you a fair rental price. Turbotax military members Even though your neighbors have an interest in the house, the days your neighbors live there are not counted as days of personal use by you. Turbotax military members This is because your neighbors rent the house as their main home under a shared equity financing agreement. Turbotax military members Example 3. Turbotax military members You own a rental property that you rent to your son. Turbotax military members Your son does not own any interest in this property. Turbotax military members He uses it as his main home and pays you a fair rental price. Turbotax military members Your son's use of the property is not personal use by you because your son is using it as his main home, he owns no interest in the property, and he is paying you a fair rental price. Turbotax military members Example 4. Turbotax military members You rent your beach house to Rosa. Turbotax military members Rosa rents her cabin in the mountains to you. Turbotax military members You each pay a fair rental price. Turbotax military members You are using your beach house for personal purposes on the days that Rosa uses it because your house is used by Rosa under an arrangement that allows you to use her cabin. Turbotax military members Example 5. Turbotax military members You rent an apartment to your mother at less than a fair rental price. Turbotax military members You are using the apartment for personal purposes on the days that your mother rents it because you rent it for less than a fair rental price. Turbotax military members Days used for repairs and maintenance. Turbotax military members   Any day that you spend working substantially full time repairing and maintaining (not improving) your property is not counted as a day of personal use. Turbotax military members Do not count such a day as a day of personal use even if family members use the property for recreational purposes on the same day. Turbotax military members Example. Turbotax military members Corey owns a cabin in the mountains that he rents for most of the year. Turbotax military members He spends a week at the cabin with family members. Turbotax military members Corey works on maintenance of the cabin 3 or 4 hours each day during the week and spends the rest of the time fishing, hiking, and relaxing. Turbotax military members Corey's family members, however, work substantially full time on the cabin each day during the week. Turbotax military members The main purpose of being at the cabin that week is to do maintenance work. Turbotax military members Therefore, the use of the cabin during the week by Corey and his family will not be considered personal use by Corey. Turbotax military members Days used as a main home before or after renting. Turbotax military members   For purposes of determining whether a dwelling unit was used as a home, you may not have to count days you used the property as your main home before or after renting it or offering it for rent as days of personal use. Turbotax military members Do not count them as days of personal use if: You rented or tried to rent the property for 12 or more consecutive months. Turbotax military members You rented or tried to rent the property for a period of less than 12 consecutive months and the period ended because you sold or exchanged the property. Turbotax military members However, this special rule does not apply when dividing expenses between rental and personal use. Turbotax military members See Property Changed to Rental Use in chapter 4. Turbotax military members Example 1. Turbotax military members On February 29, 2012, you moved out of the house you had lived in for 6 years because you accepted a job in another town. Turbotax military members You rented your house at a fair rental price from March 15, 2012, to May 14, 2013 (14 months). Turbotax military members On June 1, 2013, you moved back into your old house. Turbotax military members The days you used the house as your main home from January 1 to February 29, 2012, and from June 1 to December 31, 2013, are not counted as days of personal use. Turbotax military members Therefore, you would use the rules in chapter 1 when figuring your rental income and expenses. Turbotax military members Example 2. Turbotax military members On January 31, you moved out of the condominium where you had lived for 3 years. Turbotax military members You offered it for rent at a fair rental price beginning on February 1. Turbotax military members You were unable to rent it until April. Turbotax military members On September 15, you sold the condominium. Turbotax military members The days you used the condominium as your main home from January 1 to January 31 are not counted as days of personal use when determining whether you used it as a home. Turbotax military members Examples. Turbotax military members   The following examples show how to determine whether you used your rental property as a home. Turbotax military members Example 1. Turbotax military members You converted the basement of your home into an apartment with a bedroom, a bathroom, and a small kitchen. Turbotax military members You rented the basement apartment at a fair rental price to college students during the regular school year. Turbotax military members You rented to them on a 9-month lease (273 days). Turbotax military members You figured 10% of the total days rented to others at a fair rental price is 27 days. Turbotax military members During June (30 days), your brothers stayed with you and lived in the basement apartment rent free. Turbotax military members Your basement apartment was used as a home because you used it for personal purposes for 30 days. Turbotax military members Rent-free use by your brothers is considered personal use. Turbotax military members Your personal use (30 days) is more than the greater of 14 days or 10% of the total days it was rented (27 days). Turbotax military members Example 2. Turbotax military members You rented the guest bedroom in your home at a fair rental price during the local college's homecoming, commencement, and football weekends (a total of 27 days). Turbotax military members Your sister-in-law stayed in the room, rent free, for the last 3 weeks (21 days) in July. Turbotax military members You figured 10% of the total days rented to others at a fair rental price is 3 days. Turbotax military members The room was used as a home because you used it for personal purposes for 21 days. Turbotax military members That is more than the greater of 14 days or 10% of the 27 days it was rented (3 days). Turbotax military members Example 3. Turbotax military members You own a condominium apartment in a resort area. Turbotax military members You rented it at a fair rental price for a total of 170 days during the year. Turbotax military members For 12 of these days, the tenant was not able to use the apartment and allowed you to use it even though you did not refund any of the rent. Turbotax military members Your family actually used the apartment for 10 of those days. Turbotax military members Therefore, the apartment is treated as having been rented for 160 (170 – 10) days. Turbotax military members You figured 10% of the total days rented to others at a fair rental price is 16 days. Turbotax military members Your family also used the apartment for 7 other days during the year. Turbotax military members You used the apartment as a home because you used it for personal purposes for 17 days. Turbotax military members That is more than the greater of 14 days or 10% of the 160 days it was rented (16 days). Turbotax military members Minimal rental use. Turbotax military members   If you use the dwelling unit as a home and you rent it less than 15 days during the year, that period is not treated as rental activity. Turbotax military members See Used as a home but rented less than 15 days, later, for more information. Turbotax military members Limit on deductions. Turbotax military members   Renting a dwelling unit that is considered a home is not a passive activity. Turbotax military members Instead, if your rental expenses are more than your rental income, some or all of the excess expenses cannot be used to offset income from other sources. Turbotax military members The excess expenses that cannot be used to offset income from other sources are carried forward to the next year and treated as rental expenses for the same property. Turbotax military members Any expenses carried forward to the next year will be subject to any limits that apply for that year. Turbotax military members This limitation will apply to expenses carried forward to another year even if you do not use the property as your home for that subsequent year. Turbotax military members   To figure your deductible rental expenses for this year and any carryover to next year, use Worksheet 5–1. Turbotax military members Reporting Income and Deductions Property not used for personal purposes. Turbotax military members   If you do not use a dwelling unit for personal purposes, see chapter 3 for how to report your rental income and expenses. Turbotax military members Property used for personal purposes. Turbotax military members   If you do use a dwelling unit for personal purposes, then how you report your rental income and expenses depends on whether you used the dwelling unit as a home. Turbotax military members Not used as a home. Turbotax military members   If you use a dwelling unit for personal purposes, but not as a home, report all the rental income in your income. Turbotax military members Since you used the dwelling unit for personal purposes, you must divide your expenses between the rental use and the personal use as described earlier in this chapter under Dividing Expenses . Turbotax military members The expenses for personal use are not deductible as rental expenses. Turbotax military members   Your deductible rental expenses can be more than your gross rental income; however, see Limits on Rental Losses in chapter 3. Turbotax military members Used as a home but rented less than 15 days. Turbotax military members   If you use a dwelling unit as a home and you rent it less than 15 days during the year, its primary function is not considered to be rental and it should not be reported on Schedule E (Form 1040). Turbotax military members You are not required to report the rental income and rental expenses from this activity. Turbotax military members The expenses, including qualified mortgage interest, property taxes, and any qualified casualty loss will be reported as normally allowed on Schedule A (Form 1040). Turbotax military members See the Instructions for Schedule A (Form 1040) for more information on deducting these expenses. Turbotax military members Used as a home and rented 15 days or more. Turbotax military members   If you use a dwelling unit as a home and rent it 15 days or more during the year, include all your rental income in your income. Turbotax military members Since you used the dwelling unit for personal purposes, you must divide your expenses between the rental use and the personal use as described earlier in this chapter under Dividing Expenses . Turbotax military members The expenses for personal use are not deductible as rental expenses. Turbotax military members   If you had a net profit from renting the dwelling unit for the year (that is, if your rental income is more than the total of your rental expenses, including depreciation), deduct all of your rental expenses. Turbotax military members You do not need to use Worksheet 5-1. Turbotax military members   However, if you had a net loss from renting the dwelling unit for the year, your deduction for certain rental expenses is limited. Turbotax military members To figure your deductible rental expenses and any carryover to next year, use Worksheet 5–1. Turbotax military members Worksheet 5-1. Turbotax military members Worksheet for Figuring Rental Deductions for a Dwelling Unit Used as a Home Use this worksheet only if you answer “yes” to all of the following questions. Turbotax military members Did you use the dwelling unit as a home this year? (See Dwelling Unit Used as a Home . Turbotax military members ) Did you rent the dwelling unit at a fair rental price 15 days or more this year? Is the total of your rental expenses and depreciation more than your rental income? PART I. Turbotax military members Rental Use Percentage A. Turbotax military members Total days available for rent at fair rental price A. Turbotax military members       B. Turbotax military members Total days available for rent (line A) but not rented B. Turbotax military members       C. Turbotax military members Total days of rental use. Turbotax military members Subtract line B from line A C. Turbotax military members       D. Turbotax military members Total days of personal use (including days rented at less than fair rental price) D. Turbotax military members       E. Turbotax military members Total days of rental and personal use. Turbotax military members Add lines C and D E. Turbotax military members       F. Turbotax military members Percentage of expenses allowed for rental. Turbotax military members Divide line C by line E     F. Turbotax military members . Turbotax military members PART II. Turbotax military members Allowable Rental Expenses 1. Turbotax military members Enter rents received 1. Turbotax military members   2a. Turbotax military members Enter the rental portion of deductible home mortgage interest and qualified mortgage insurance premiums (see instructions) 2a. Turbotax military members       b. Turbotax military members Enter the rental portion of real estate taxes b. Turbotax military members       c. Turbotax military members Enter the rental portion of deductible casualty and theft losses (see instructions) c. Turbotax military members       d. Turbotax military members Enter direct rental expenses (see instructions) d. Turbotax military members       e. Turbotax military members Fully deductible rental expenses. Turbotax military members Add lines 2a–2d. Turbotax military members Enter here and  on the appropriate lines on Schedule E (see instructions) 2e. Turbotax military members   3. Turbotax military members Subtract line 2e from line 1. Turbotax military members If zero or less, enter -0- 3. Turbotax military members   4a. Turbotax military members Enter the rental portion of expenses directly related to operating or maintaining  the dwelling unit (such as repairs, insurance, and utilities) 4a. Turbotax military members       b. Turbotax military members Enter the rental portion of excess mortgage interest and qualified mortgage insurance premiums (see instructions) b. Turbotax military members       c. Turbotax military members Carryover of operating expenses from 2012 worksheet c. Turbotax military members       d. Turbotax military members Add lines 4a–4c d. Turbotax military members       e. Turbotax military members Allowable expenses. Turbotax military members Enter the smaller of line 3 or line 4d (see instructions) 4e. Turbotax military members   5. Turbotax military members Subtract line 4e from line 3. Turbotax military members If zero or less, enter -0- 5. Turbotax military members   6a. Turbotax military members Enter the rental portion of excess casualty and theft losses (see instructions) 6a. Turbotax military members       b. Turbotax military members Enter the rental portion of depreciation of the dwelling unit b. Turbotax military members       c. Turbotax military members Carryover of excess casualty losses and depreciation from 2012 worksheet c. Turbotax military members       d. Turbotax military members Add lines 6a–6c d. Turbotax military members       e. Turbotax military members Allowable excess casualty and theft losses and depreciation. Turbotax military members Enter the smaller of  line 5 or line 6d (see instructions) 6e. Turbotax military members   PART III. Turbotax military members Carryover of Unallowed Expenses to Next Year 7a. Turbotax military members Operating expenses to be carried over to next year. Turbotax military members Subtract line 4e from line 4d 7a. Turbotax military members   b. Turbotax military members Excess casualty and theft losses and depreciation to be carried over to next year. Turbotax military members  Subtract line 6e from line 6d b. Turbotax military members   Worksheet 5-1 Instructions. Turbotax military members Worksheet for Figuring Rental Deductions for a Dwelling Unit Used as a Home Caution. Turbotax military members Use the percentage determined in Part I, line F, to figure the rental portions to enter on lines 2a–2c, 4a–4b, and 6a–6b of  Part II. Turbotax military members Line 2a. Turbotax military members Figure the mortgage interest on the dwelling unit that you could deduct on Schedule A as if you had not rented the unit. Turbotax military members Do not include interest on a loan that did not benefit the dwelling unit. Turbotax military members For example, do not include interest on a home equity loan used to pay off credit cards or other personal loans, buy a car, or pay college tuition. Turbotax military members Include interest on a loan used to buy, build, or improve the dwelling unit, or to refinance such a loan. Turbotax military members Include the rental portion of this interest in the total you enter on line 2a of the worksheet. Turbotax military members   Figure the qualified mortgage insurance premiums on the dwelling unit that you could deduct on line 13 of Schedule A as if you had not rented the unit. Turbotax military members See the Schedule A instructions. Turbotax military members However, figure your adjusted gross income (Form 1040, line 38) without your rental income and expenses from the dwelling unit. Turbotax military members See Line 4b to deduct the part of the qualified mortgage insurance premiums not allowed because of the adjusted gross income limit. Turbotax military members Include the rental portion of the amount from Schedule A, line 13, in the total you enter on line 2a of the worksheet. Turbotax military members   Note. Turbotax military members Do not file this Schedule A or use it to figure the amount to deduct on line 13 of that schedule. Turbotax military members Instead, figure the personal portion on a separate Schedule A. Turbotax military members If you have deducted mortgage interest or qualified mortgage insurance premiums on the dwelling unit on other forms, such as Schedule C or F, remember to reduce your Schedule A deduction by that amount. Turbotax military members           Line 2c. Turbotax military members Figure the casualty and theft losses related to the dwelling unit that you could deduct on Schedule A as if you had not rented the dwelling unit. Turbotax military members To do this, complete Section A of Form 4684, Casualties and Thefts, treating the losses as personal losses. Turbotax military members If any of the loss is due to a federally declared disaster, see the Instructions for Form 4684. Turbotax military members On Form 4684, line 17, enter 10% of your adjusted gross income figured without your rental income and expenses from the dwelling unit. Turbotax military members Enter the rental portion of the result from Form 4684, line 18, on line 2c of this worksheet. Turbotax military members   Note. Turbotax military members Do not file this Form 4684 or use it to figure your personal losses on Schedule A. Turbotax military members Instead, figure the personal portion on a separate Form 4684. Turbotax military members           Line 2d. Turbotax military members Enter the total of your rental expenses that are directly related only to the rental activity. Turbotax military members These include interest on loans used for rental activities other than to buy, build, or improve the dwelling unit. Turbotax military members Also include rental agency fees, advertising, office supplies, and depreciation on office equipment used in your rental activity. Turbotax military members           Line 2e. Turbotax military members You can deduct the amounts on lines 2a, 2b, 2c, and 2d as rental expenses on Schedule E even if your rental expenses are more than your rental income. Turbotax military members Enter the amounts on lines 2a, 2b, 2c, and 2d on the appropriate lines of Schedule E. Turbotax military members           Line 4b. Turbotax military members On line 2a, you entered the rental portion of the mortgage interest or qualified mortgage insurance premiums you could deduct on Schedule A if you had not rented the dwelling unit. Turbotax military members If you had additional mortgage interest and qualified mortgage insurance premiums that would not be deductible on Schedule A because of limits imposed on them, enter on line 4b of this worksheet the rental portion of those excess amounts. Turbotax military members Do not include interest on a loan that did not benefit the dwelling unit  (as explained in the line 2a instructions). Turbotax military members           Line 4e. Turbotax military members You can deduct the amounts on lines 4a, 4b, and 4c as rental expenses on Schedule E only to the extent they are not more than the amount on line 4e. Turbotax military members *           Line 6a. Turbotax military members To find the rental portion of excess casualty and theft losses, use the Form 4684 you prepared for line 2c of this worksheet. Turbotax military members   A. Turbotax military members Enter the amount from Form 4684, line 10       B. Turbotax military members Enter the rental portion of line A       C. Turbotax military members Enter the amount from line 2c of this worksheet       D. Turbotax military members Subtract line C from line B. Turbotax military members Enter the result here and on line 6a of this worksheet               Line 6e. Turbotax military members You can deduct the amounts on lines 6a, 6b, and 6c as rental expenses on Schedule E only to the extent they are not more than the amount on line 6e. Turbotax military members * *Allocating the limited deduction. Turbotax military members If you cannot deduct all of the amount on line 4d or 6d this year, you can allocate the allowable deduction in any way you wish among the expenses included on line 4d or 6d. Turbotax military members Enter the amount you allocate to each expense on the appropriate line of Schedule E, Part I. Turbotax military members Prev  Up  Next   Home   More Online Publications