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Where To Send 2011 Tax Return

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Where To Send 2011 Tax Return

Where to send 2011 tax return Publication 587 - Main Content Table of Contents Qualifying for a DeductionExclusive Use Regular Use Trade or Business Use Principal Place of Business Place To Meet Patients, Clients, or Customers Separate Structure Figuring the DeductionUsing Actual Expenses Using the Simplified Method Daycare Facility Standard meal and snack rates. Where to send 2011 tax return Sale or Exchange of Your HomeGain on Sale Depreciation Basis Adjustment Reporting the Sale More Information Business Furniture and EquipmentListed Property Property Bought for Business Use Personal Property Converted to Business Use Recordkeeping Where To DeductSelf-Employed Persons Employees Partners How To Get Tax HelpLow Income Taxpayer Clinics Worksheet To Figure the Deduction for Business Use of Your HomeInstructions for the Worksheet Worksheets To Figure the Deduction for Business Use of Your Home (Simplified Method) Instructions for the Simplified Method Worksheet Instructions for the Daycare Facility Worksheet Instructions for the Area Adjustment Worksheet Qualifying for a Deduction Generally, you cannot deduct items related to your home, such as mortgage interest, real estate taxes, utilities, maintenance, rent, depreciation, or property insurance, as business expenses. Where to send 2011 tax return However, you may be able to deduct expenses related to the business use of part of your home if you meet specific requirements. Where to send 2011 tax return Even then, the deductible amount of these types of expenses may be limited. Where to send 2011 tax return Use this section and Figure A, later, to decide if you can deduct expenses for the business use of your home. Where to send 2011 tax return To qualify to deduct expenses for business use of your home, you must use part of your home: Exclusively and regularly as your principal place of business (defined later), Exclusively and regularly as a place where you meet or deal with patients, clients, or customers in the normal course of your trade or business, In the case of a separate structure which is not attached to your home, in connection with your trade or business, On a regular basis for certain storage use (see Storage of inventory or product samples , later), For rental use (see Publication 527), or As a daycare facility (see Daycare Facility , later). Where to send 2011 tax return Additional tests for employee use. Where to send 2011 tax return   If you are an employee and you use a part of your home for business, you may qualify for a deduction for its business use. Where to send 2011 tax return You must meet the tests discussed earlier plus: Your business use must be for the convenience of your employer, and You must not rent any part of your home to your employer and use the rented portion to perform services as an employee for that employer. Where to send 2011 tax return If the use of the home office is merely appropriate and helpful, you cannot deduct expenses for the business use of your home. Where to send 2011 tax return Exclusive Use To qualify under the exclusive use test, you must use a specific area of your home only for your trade or business. Where to send 2011 tax return The area used for business can be a room or other separately identifiable space. Where to send 2011 tax return The space does not need to be marked off by a permanent partition. Where to send 2011 tax return You do not meet the requirements of the exclusive use test if you use the area in question both for business and for personal purposes. Where to send 2011 tax return Example. Where to send 2011 tax return You are an attorney and use a den in your home to write legal briefs and prepare clients' tax returns. Where to send 2011 tax return Your family also uses the den for recreation. Where to send 2011 tax return The den is not used exclusively in your trade or business, so you cannot claim a deduction for the business use of the den. Where to send 2011 tax return Exceptions to Exclusive Use You do not have to meet the exclusive use test if either of the following applies. Where to send 2011 tax return You use part of your home for the storage of inventory or product samples (discussed next). Where to send 2011 tax return You use part of your home as a daycare facility, discussed later under Daycare Facility . Where to send 2011 tax return Note. Where to send 2011 tax return With the exception of these two uses, any portion of the home used for business purposes must meet the exclusive use test. Where to send 2011 tax return Storage of inventory or product samples. Where to send 2011 tax return    If you use part of your home for storage of inventory or product samples, you can deduct expenses for the business use of your home without meeting the exclusive use test. Where to send 2011 tax return However, you must meet all the following tests. Where to send 2011 tax return You sell products at wholesale or retail as your trade or business. Where to send 2011 tax return You keep the inventory or product samples in your home for use in your trade or business. Where to send 2011 tax return Your home is the only fixed location of your trade or business. Where to send 2011 tax return You use the storage space on a regular basis. Where to send 2011 tax return The space you use is a separately identifiable space suitable for storage. Where to send 2011 tax return Example. Where to send 2011 tax return Your home is the only fixed location of your business of selling mechanics' tools at retail. Where to send 2011 tax return You regularly use half of your basement for storage of inventory and product samples. Where to send 2011 tax return You sometimes use the area for personal purposes. Where to send 2011 tax return The expenses for the storage space are deductible even though you do not use this part of your basement exclusively for business. Where to send 2011 tax return Regular Use To qualify under the regular use test, you must use a specific area of your home for business on a regular basis. Where to send 2011 tax return Incidental or occasional business use is not regular use. Where to send 2011 tax return You must consider all facts and circumstances in determining whether your use is on a regular basis. Where to send 2011 tax return Trade or Business Use To qualify under the trade-or-business-use test, you must use part of your home in connection with a trade or business. Where to send 2011 tax return If you use your home for a profit-seeking activity that is not a trade or business, you cannot take a deduction for its business use. Where to send 2011 tax return Example. Where to send 2011 tax return You use part of your home exclusively and regularly to read financial periodicals and reports, clip bond coupons, and carry out similar activities related to your own investments. Where to send 2011 tax return You do not make investments as a broker or dealer. Where to send 2011 tax return So, your activities are not part of a trade or business and you cannot take a deduction for the business use of your home. Where to send 2011 tax return Principal Place of Business You can have more than one business location, including your home, for a single trade or business. Where to send 2011 tax return To qualify to deduct the expenses for the business use of your home under the principal place of business test, your home must be your principal place of business for that trade or business. Where to send 2011 tax return To determine whether your home is your principal place of business, you must consider: The relative importance of the activities performed at each place where you conduct business, and The amount of time spent at each place where you conduct business. Where to send 2011 tax return Your home office will qualify as your principal place of business if you meet the following requirements. Where to send 2011 tax return You use it exclusively and regularly for administrative or management activities of your trade or business. Where to send 2011 tax return You have no other fixed location where you conduct substantial administrative or management activities of your trade or business. Where to send 2011 tax return If, after considering your business locations, your home cannot be identified as your principal place of business, you cannot deduct home office expenses. Where to send 2011 tax return However, see the later discussions under Place To Meet Patients, Clients, or Customers and Separate Structure for other ways to qualify to deduct home office expenses. Where to send 2011 tax return Administrative or management activities. Where to send 2011 tax return   There are many activities that are administrative or managerial in nature. Where to send 2011 tax return The following are a few examples. Where to send 2011 tax return Billing customers, clients, or patients. Where to send 2011 tax return Keeping books and records. Where to send 2011 tax return Ordering supplies. Where to send 2011 tax return Setting up appointments. Where to send 2011 tax return Forwarding orders or writing reports. Where to send 2011 tax return Administrative or management activities performed at other locations. Where to send 2011 tax return   The following activities performed by you or others will not disqualify your home office from being your principal place of business. Where to send 2011 tax return You have others conduct your administrative or management activities at locations other than your home. Where to send 2011 tax return (For example, another company does your billing from its place of business. Where to send 2011 tax return ) You conduct administrative or management activities at places that are not fixed locations of your business, such as in a car or a hotel room. Where to send 2011 tax return You occasionally conduct minimal administrative or management activities at a fixed location outside your home. Where to send 2011 tax return You conduct substantial nonadministrative or nonmanagement business activities at a fixed location outside your home. Where to send 2011 tax return (For example, you meet with or provide services to customers, clients, or patients at a fixed location of the business outside your home. Where to send 2011 tax return ) You have suitable space to conduct administrative or management activities outside your home, but choose to use your home office for those activities instead. Where to send 2011 tax return Please click here for the text description of the image. Where to send 2011 tax return Can you deduct business use of the home expenses? Example 1. Where to send 2011 tax return John is a self-employed plumber. Where to send 2011 tax return Most of John's time is spent at customers' homes and offices installing and repairing plumbing. Where to send 2011 tax return He has a small office in his home that he uses exclusively and regularly for the administrative or management activities of his business, such as phoning customers, ordering supplies, and keeping his books. Where to send 2011 tax return John writes up estimates and records of work completed at his customers' premises. Where to send 2011 tax return He does not conduct any substantial administrative or management activities at any fixed location other than his home office. Where to send 2011 tax return John does not do his own billing. Where to send 2011 tax return He uses a local bookkeeping service to bill his customers. Where to send 2011 tax return John's home office qualifies as his principal place of business for deducting expenses for its use. Where to send 2011 tax return He uses the home office for the administrative or managerial activities of his plumbing business and he has no other fixed location where he conducts these administrative or managerial activities. Where to send 2011 tax return His choice to have his billing done by another company does not disqualify his home office from being his principal place of business. Where to send 2011 tax return He meets all the qualifications, including principal place of business, so he can deduct expenses (subject to certain limitations, explained later) for the business use of his home. Where to send 2011 tax return Example 2. Where to send 2011 tax return Pamela is a self-employed sales representative for several different product lines. Where to send 2011 tax return She has an office in her home that she uses exclusively and regularly to set up appointments and write up orders and other reports for the companies whose products she sells. Where to send 2011 tax return She occasionally writes up orders and sets up appointments from her hotel room when she is away on business overnight. Where to send 2011 tax return Pamela's business is selling products to customers at various locations throughout her territory. Where to send 2011 tax return To make these sales, she regularly visits customers to explain the available products and take orders. Where to send 2011 tax return Pamela's home office qualifies as her principal place of business for deducting expenses for its use. Where to send 2011 tax return She conducts administrative or management activities there and she has no other fixed location where she conducts substantial administrative or management activities. Where to send 2011 tax return The fact that she conducts some administrative or management activities in her hotel room (not a fixed location) does not disqualify her home office from being her principal place of business. Where to send 2011 tax return She meets all the qualifications, including principal place of business, so she can deduct expenses (subject to certain limitations, explained later) for the business use of her home. Where to send 2011 tax return Example 3. Where to send 2011 tax return Paul is a self-employed anesthesiologist. Where to send 2011 tax return He spends the majority of his time administering anesthesia and postoperative care in three local hospitals. Where to send 2011 tax return One of the hospitals provides him with a small shared office where he could conduct administrative or management activities. Where to send 2011 tax return Paul very rarely uses the office the hospital provides. Where to send 2011 tax return He uses a room in his home that he has converted to an office. Where to send 2011 tax return He uses this room exclusively and regularly to conduct all the following activities. Where to send 2011 tax return Contacting patients, surgeons, and hospitals regarding scheduling. Where to send 2011 tax return Preparing for treatments and presentations. Where to send 2011 tax return Maintaining billing records and patient logs. Where to send 2011 tax return Satisfying continuing medical education requirements. Where to send 2011 tax return Reading medical journals and books. Where to send 2011 tax return Paul's home office qualifies as his principal place of business for deducting expenses for its use. Where to send 2011 tax return He conducts administrative or management activities for his business as an anesthesiologist there and he has no other fixed location where he conducts substantial administrative or management activities for this business. Where to send 2011 tax return His choice to use his home office instead of the one provided by the hospital does not disqualify his home office from being his principal place of business. Where to send 2011 tax return His performance of substantial nonadministrative or nonmanagement activities at fixed locations outside his home also does not disqualify his home office from being his principal place of business. Where to send 2011 tax return He meets all the qualifications, including principal place of business, so he can deduct expenses (subject to certain limitations, explained later) for the business use of his home. Where to send 2011 tax return Example 4. Where to send 2011 tax return Kathleen is employed as a teacher. Where to send 2011 tax return She is required to teach and meet with students at the school and to grade papers and tests. Where to send 2011 tax return The school provides her with a small office where she can work on her lesson plans, grade papers and tests, and meet with parents and students. Where to send 2011 tax return The school does not require her to work at home. Where to send 2011 tax return Kathleen prefers to use the office she has set up in her home and does not use the one provided by the school. Where to send 2011 tax return She uses this home office exclusively and regularly for the administrative duties of her teaching job. Where to send 2011 tax return Kathleen must meet the convenience-of-the-employer test, even if her home qualifies as her principal place of business for deducting expenses for its use. Where to send 2011 tax return Her employer provides her with an office and does not require her to work at home, so she does not meet the convenience-of-the-employer test and cannot claim a deduction for the business use of her home. Where to send 2011 tax return More Than One Trade or Business The same home office can be the principal place of business for two or more separate business activities. Where to send 2011 tax return Whether your home office is the principal place of business for more than one business activity must be determined separately for each of your trade or business activities. Where to send 2011 tax return You must use the home office exclusively and regularly for one or more of the following purposes. Where to send 2011 tax return As the principal place of business for one or more of your trades or businesses. Where to send 2011 tax return As a place to meet or deal with patients, clients, or customers in the normal course of one or more of your trades or businesses. Where to send 2011 tax return If your home office is a separate structure, in connection with one or more of your trades or businesses. Where to send 2011 tax return You can use your home office for more than one business activity, but you cannot use it for any nonbusiness (i. Where to send 2011 tax return e. Where to send 2011 tax return , personal) activities. Where to send 2011 tax return If you are an employee, any use of the home office in connection with your employment must be for the convenience of your employer. Where to send 2011 tax return See Rental to employer , later, if you rent part of your home to your employer. Where to send 2011 tax return Example. Where to send 2011 tax return Tracy White is employed as a teacher. Where to send 2011 tax return Her principal place of work is the school, which provides her office space to do her school work. Where to send 2011 tax return She also has a mail order jewelry business. Where to send 2011 tax return All her work in the jewelry business is done in her home office and the office is used exclusively for that business. Where to send 2011 tax return If she meets all the other tests, she can deduct expenses for the business use of her home for the jewelry business. Where to send 2011 tax return If Tracy also uses the office for work related to her teaching, she must meet the exclusive use test for both businesses to qualify for the deduction. Where to send 2011 tax return As an employee, Tracy must also meet the convenience-of-the-employer test to qualify for the deduction. Where to send 2011 tax return She does not meet this test for her work as a teacher, so she cannot claim a deduction for the business use of her home for either activity. Where to send 2011 tax return Place To Meet Patients, Clients, or Customers If you meet or deal with patients, clients, or customers in your home in the normal course of your business, even though you also carry on business at another location, you can deduct your expenses for the part of your home used exclusively and regularly for business if you meet both the following tests. Where to send 2011 tax return You physically meet with patients, clients, or customers on your premises. Where to send 2011 tax return Their use of your home is substantial and integral to the conduct of your business. Where to send 2011 tax return Doctors, dentists, attorneys, and other professionals who maintain offices in their homes generally will meet this requirement. Where to send 2011 tax return Using your home for occasional meetings and telephone calls will not qualify you to deduct expenses for the business use of your home. Where to send 2011 tax return The part of your home you use exclusively and regularly to meet patients, clients, or customers does not have to be your principal place of business. Where to send 2011 tax return Example. Where to send 2011 tax return June Quill, a self-employed attorney, works 3 days a week in her city office. Where to send 2011 tax return She works 2 days a week in her home office used only for business. Where to send 2011 tax return She regularly meets clients there. Where to send 2011 tax return Her home office qualifies for a business deduction because she meets clients there in the normal course of her business. Where to send 2011 tax return Separate Structure You can deduct expenses for a separate free-standing structure, such as a studio, workshop, garage, or barn, if you use it exclusively and regularly for your business. Where to send 2011 tax return The structure does not have to be your principal place of business or a place where you meet patients, clients, or customers. Where to send 2011 tax return Example. Where to send 2011 tax return John Berry operates a floral shop in town. Where to send 2011 tax return He grows the plants for his shop in a greenhouse behind his home. Where to send 2011 tax return He uses the greenhouse exclusively and regularly in his business, so he can deduct the expenses for its use, subject to certain limitations, explained later. Where to send 2011 tax return Figuring the Deduction After you determine that you meet the tests under Qualifying for a Deduction , you can begin to figure how much you can deduct. Where to send 2011 tax return When figuring the amount you can deduct for the business use of your home, you will use either your actual expenses or a simplified method. Where to send 2011 tax return Electing to use the simplified method. Where to send 2011 tax return   The simplified method is an alternative to the calculation, allocation, and substantiation of actual expenses. Where to send 2011 tax return You choose whether or not to figure your deduction using the simplified method each taxable year. Where to send 2011 tax return See Using the Simplified Method , later. Where to send 2011 tax return Rental to employer. Where to send 2011 tax return   If you rent part of your home to your employer and you use the rented part in performing services for your employer as an employee, your deduction for the business use of your home is limited. Where to send 2011 tax return You can deduct mortgage interest, qualified mortgage insurance premiums, real estate taxes, and personal casualty losses for the rented part, subject to any limitations. Where to send 2011 tax return However, you cannot deduct otherwise allowable trade or business expenses, business casualty losses, or depreciation related to the use of your home (or use the simplified method as an alternative to deducting these actual expenses) in performing services for your employer. Where to send 2011 tax return Using Actual Expenses If you do not or cannot elect to use the simplified method for a home, you will figure your deduction for that home using your actual expenses. Where to send 2011 tax return You will also need to figure the percentage of your home used for business and the limit on the deduction. Where to send 2011 tax return If you are an employee or a partner, or you use your home in your farming business and you file Schedule F (Form 1040), you can use the Worksheet To Figure the Deduction for Business Use of Your Home, near the end of this publication, to help you figure your deduction. Where to send 2011 tax return If you use your home in a trade or business and you file Schedule C (Form 1040), you will use Form 8829 to figure your deduction. Where to send 2011 tax return Part-year use. Where to send 2011 tax return   You cannot deduct expenses for the business use of your home incurred during any part of the year you did not use your home for business purposes. Where to send 2011 tax return For example, if you begin using part of your home for business on July 1, and you meet all the tests from that date until the end of the year, consider only your expenses for the last half of the year in figuring your allowable deduction. Where to send 2011 tax return Expenses related to tax-exempt income. Where to send 2011 tax return   Generally, you cannot deduct expenses that are related to tax-exempt allowances. Where to send 2011 tax return However, if you receive a tax-exempt parsonage allowance or a tax-exempt military allowance, your expenses for mortgage interest and real estate taxes are deductible under the normal rules. Where to send 2011 tax return No deduction is allowed for other expenses related to the tax-exempt allowance. Where to send 2011 tax return   If your housing is provided free of charge and the value of the housing is tax exempt, you cannot deduct the rental value of any portion of the housing. Where to send 2011 tax return Actual Expenses You must divide the expenses of operating your home between personal and business use. Where to send 2011 tax return The part of a home operating expense you can use to figure your deduction depends on both of the following. Where to send 2011 tax return Whether the expense is direct, indirect, or unrelated. Where to send 2011 tax return The percentage of your home used for business. Where to send 2011 tax return Table 1, next, describes the types of expenses you may have and the extent to which they are deductible. Where to send 2011 tax return Table 1. Where to send 2011 tax return Types of Expenses  Expense  Description  Deductibility Direct Expenses only for  the business part  of your home. Where to send 2011 tax return Deductible in full. Where to send 2011 tax return *   Examples:  Painting or repairs  only in the area  used for business. Where to send 2011 tax return Exception: May be only partially  deductible in a daycare facility. Where to send 2011 tax return See Daycare Facility , later. Where to send 2011 tax return Indirect Expenses for  keeping up and running your  entire home. Where to send 2011 tax return Deductible based on the percentage of your home used for business. Where to send 2011 tax return *   Examples:  Insurance, utilities, and  general repairs. Where to send 2011 tax return   Unrelated Expenses only for  the parts of your  home not used  for business. Where to send 2011 tax return Not deductible. Where to send 2011 tax return   Examples:  Lawn care or painting  a room not used  for business. Where to send 2011 tax return   *Subject to the deduction limit, discussed later. Where to send 2011 tax return Form 8829 and the Worksheet To Figure the Deduction for Business Use of Your Home have separate columns for direct and indirect expenses. Where to send 2011 tax return Certain expenses are deductible whether or not you use your home for business. Where to send 2011 tax return If you qualify to deduct business use of the home expenses, use the business percentage of these expenses to figure your total business use of the home deduction. Where to send 2011 tax return These expenses include the following. Where to send 2011 tax return Real estate taxes. Where to send 2011 tax return Qualified mortgage insurance premiums. Where to send 2011 tax return Deductible mortgage interest. Where to send 2011 tax return Casualty losses. Where to send 2011 tax return Other expenses are deductible only if you use your home for business. Where to send 2011 tax return You can use the business percentage of these expenses to figure your total business use of the home deduction. Where to send 2011 tax return These expenses generally include (but are not limited to) the following. Where to send 2011 tax return Depreciation (covered under Depreciating Your Home , later). Where to send 2011 tax return Insurance. Where to send 2011 tax return Rent paid for the use of property you do not own but use in your trade or business. Where to send 2011 tax return Repairs. Where to send 2011 tax return Security system. Where to send 2011 tax return Utilities and services. Where to send 2011 tax return Real estate taxes. Where to send 2011 tax return   To figure the business part of your real estate taxes, multiply the real estate taxes paid by the percentage of your home used for business. Where to send 2011 tax return   For more information on the deduction for real estate taxes, see Publication 530, Tax Information for Homeowners. Where to send 2011 tax return Deductible mortgage interest. Where to send 2011 tax return   To figure the business part of your deductible mortgage interest, multiply this interest by the percentage of your home used for business. Where to send 2011 tax return You can include interest on a second mortgage in this computation. Where to send 2011 tax return If your total mortgage debt is more than $1,000,000 or your home equity debt is more than $100,000, your deduction may be limited. Where to send 2011 tax return For more information on what interest is deductible, see Publication 936, Home Mortgage Interest Deduction. Where to send 2011 tax return Qualified mortgage insurance premiums. Where to send 2011 tax return   To figure the business part of your qualified mortgage insurance premiums, multiply the premiums by the percentage of your home used for business. Where to send 2011 tax return You can include premiums for insurance on a second mortgage in this computation. Where to send 2011 tax return If your adjusted gross income is more than $100,000 ($50,000 if your filing status is married filing separately), your deduction may be limited. Where to send 2011 tax return For more information, see Publication 936, and Line 13 in the Instructions for Schedule A (Form 1040). Where to send 2011 tax return Casualty losses. Where to send 2011 tax return    If you have a casualty loss on your home that you use for business, treat the casualty loss as a direct expense, an indirect expense, or an unrelated expense, depending on the property affected. Where to send 2011 tax return A direct expense is the loss on the portion of the property you use only in your business. Where to send 2011 tax return Use the entire loss to figure the business use of the home deduction. Where to send 2011 tax return An indirect expense is the loss on property you use for both business and personal purposes. Where to send 2011 tax return Use only the business portion to figure the deduction. Where to send 2011 tax return An unrelated expense is the loss on property you do not use in your business. Where to send 2011 tax return Do not use any of the loss to figure the deduction. Where to send 2011 tax return Example. Where to send 2011 tax return You meet the rules to take a deduction for an office in your home that is 10% of the total area of your house. Where to send 2011 tax return A storm damages your roof. Where to send 2011 tax return This is an indirect expense as the roof is part of the whole house and is considered to be used both for business and personal purposes. Where to send 2011 tax return You would complete Form 4684, Casualties and Thefts, to report your loss. Where to send 2011 tax return You complete both section A (Personal Use Property) and section B (Business and Income-Producing Property) as your home is used both for business and personal purposes. Where to send 2011 tax return Since you use 90% of your home for personal purposes, use 90% of the cost or adjusted basis of your home, insurance or other reimbursement, and fair market value, both before and after the storm, to figure the amounts to enter on lines 2, 3, 5, and 6 of Form 4684. Where to send 2011 tax return Since you use 10% of your home for business purposes, use 10% of the cost or adjusted basis of your home, insurance or other reimbursement, and fair market value, both before and after the storm, to figure the amounts to enter on lines 20, 21, 23, and 24 of Form 4684. Where to send 2011 tax return Forms and worksheets to use. Where to send 2011 tax return   If you are filing Schedule C (Form 1040), get Form 8829 and follow the instructions for casualty losses. Where to send 2011 tax return If you are an employee or a partner, or you file Schedule F (Form 1040), use the Worksheet To Figure the Deduction for Business Use of Your Home, near the end of this publication. Where to send 2011 tax return You will also need to get Form 4684. Where to send 2011 tax return More information. Where to send 2011 tax return   For more information on casualty losses, see Publication 547, Casualties, Disasters, and Thefts. Where to send 2011 tax return Insurance. Where to send 2011 tax return   You can deduct the cost of insurance that covers the business part of your home. Where to send 2011 tax return However, if your insurance premium gives you coverage for a period that extends past the end of your tax year, you can deduct only the business percentage of the part of the premium that gives you coverage for your tax year. Where to send 2011 tax return You can deduct the business percentage of the part that applies to the following year in that year. Where to send 2011 tax return Rent. Where to send 2011 tax return   If you rent the home you occupy and meet the requirements for business use of the home, you can deduct part of the rent you pay. Where to send 2011 tax return To figure your deduction, multiply your rent payments by the percentage of your home used for business. Where to send 2011 tax return   If you own your home, you cannot deduct the fair rental value of your home. Where to send 2011 tax return However, see Depreciating Your Home , later. Where to send 2011 tax return Repairs. Where to send 2011 tax return   The cost of repairs that relate to your business, including labor (other than your own labor), is a deductible expense. Where to send 2011 tax return For example, a furnace repair benefits the entire home. Where to send 2011 tax return If you use 10% of your home for business, you can deduct 10% of the cost of the furnace repair. Where to send 2011 tax return   Repairs keep your home in good working order over its useful life. Where to send 2011 tax return Examples of common repairs are patching walls and floors, painting, wallpapering, repairing roofs and gutters, and mending leaks. Where to send 2011 tax return However, repairs are sometimes treated as a permanent improvement and are not deductible. Where to send 2011 tax return See Permanent improvements , later, under Depreciating Your Home. Where to send 2011 tax return Security system. Where to send 2011 tax return   If you install a security system that protects all the doors and windows in your home, you can deduct the business part of the expenses you incur to maintain and monitor the system. Where to send 2011 tax return You also can take a depreciation deduction for the part of the cost of the security system relating to the business use of your home. Where to send 2011 tax return Utilities and services. Where to send 2011 tax return   Expenses for utilities and services, such as electricity, gas, trash removal, and cleaning services, are primarily personal expenses. Where to send 2011 tax return However, if you use part of your home for business, you can deduct the business part of these expenses. Where to send 2011 tax return Generally, the business percentage for utilities is the same as the percentage of your home used for business. Where to send 2011 tax return Telephone. Where to send 2011 tax return   The basic local telephone service charge, including taxes, for the first telephone line into your home (i. Where to send 2011 tax return e. Where to send 2011 tax return , landline) is a nondeductible personal expense. Where to send 2011 tax return However, charges for business long-distance phone calls on that line, as well as the cost of a second line into your home used exclusively for business, are deductible business expenses. Where to send 2011 tax return Do not include these expenses as a cost of using your home for business. Where to send 2011 tax return Deduct these charges separately on the appropriate form or schedule. Where to send 2011 tax return For example, if you file Schedule C (Form 1040), deduct these expenses on line 25, Utilities (instead of line 30, Expenses for business use of your home). Where to send 2011 tax return Depreciating Your Home If you own your home and qualify to deduct expenses for its business use, you can claim a deduction for depreciation. Where to send 2011 tax return Depreciation is an allowance for the wear and tear on the part of your home used for business. Where to send 2011 tax return You cannot depreciate the cost or value of the land. Where to send 2011 tax return You recover its cost when you sell or otherwise dispose of the property. Where to send 2011 tax return Before you figure your depreciation deduction, you need to know the following information. Where to send 2011 tax return The month and year you started using your home for business. Where to send 2011 tax return The adjusted basis and fair market value of your home (excluding land) at the time you began using it for business. Where to send 2011 tax return The cost of any improvements before and after you began using the property for business. Where to send 2011 tax return The percentage of your home used for business. Where to send 2011 tax return See Business Percentage , later. Where to send 2011 tax return Adjusted basis defined. Where to send 2011 tax return   The adjusted basis of your home is generally its cost, plus the cost of any permanent improvements you made to it, minus any casualty losses or depreciation deducted in earlier tax years. Where to send 2011 tax return For a discussion of adjusted basis, see Publication 551. Where to send 2011 tax return Permanent improvements. Where to send 2011 tax return   A permanent improvement increases the value of property, adds to its life, or gives it a new or different use. Where to send 2011 tax return Examples of improvements are replacing electric wiring or plumbing, adding a new roof or addition, paneling, or remodeling. Where to send 2011 tax return    You must carefully distinguish between repairs and improvements. Where to send 2011 tax return See Repairs , earlier, under Actual Expenses. Where to send 2011 tax return You also must keep accurate records of these expenses. Where to send 2011 tax return These records will help you decide whether an expense is a deductible or a capital (added to the basis) expense. Where to send 2011 tax return However, if you make repairs as part of an extensive remodeling or restoration of your home, the entire job is an improvement. Where to send 2011 tax return Example. Where to send 2011 tax return You buy an older home and fix up two rooms as a beauty salon. Where to send 2011 tax return You patch the plaster on the ceilings and walls, paint, repair the floor, install an outside door, and install new wiring, plumbing, and other equipment. Where to send 2011 tax return Normally, the patching, painting, and floor work are repairs and the other expenses are permanent improvements. Where to send 2011 tax return However, because the work gives your property a new use, the entire remodeling job is a permanent improvement and its cost is added to the basis of the property. Where to send 2011 tax return You cannot deduct any portion of it as a repair expense. Where to send 2011 tax return Adjusting for depreciation deducted in earlier years. Where to send 2011 tax return   Decrease the basis of your property by the depreciation you deducted, or could have deducted, on your tax returns under the method of depreciation you properly selected. Where to send 2011 tax return If you deducted less depreciation than you could have under the method you selected, decrease the basis by the amount you could have deducted under that method. Where to send 2011 tax return If you did not deduct any depreciation, decrease the basis by the amount you could have deducted. Where to send 2011 tax return   If you deducted more depreciation than you should have, decrease your basis by the amount you should have deducted, plus the part of the excess depreciation you deducted that actually decreased your tax liability for any year. Where to send 2011 tax return   If you deducted the incorrect amount of depreciation, see Publication 946. Where to send 2011 tax return Fair market value defined. Where to send 2011 tax return   The fair market value of your home is the price at which the property would change hands between a buyer and a seller, neither having to buy or sell, and both having reasonable knowledge of all necessary facts. Where to send 2011 tax return Sales of similar property, on or about the date you begin using your home for business, may be helpful in determining the property's fair market value. Where to send 2011 tax return Figuring the depreciation deduction for the current year. Where to send 2011 tax return   If you began using your home for business before 2013, continue to use the same depreciation method you used in past tax years. Where to send 2011 tax return   If you began using your home for business for the first time in 2013, depreciate the business part as nonresidential real property under the modified accelerated cost recovery system (MACRS). Where to send 2011 tax return Under MACRS, nonresidential real property is depreciated using the straight line method over 39 years. Where to send 2011 tax return For more information on MACRS and other methods of depreciation, see Publication 946. Where to send 2011 tax return   To figure the depreciation deduction, you must first figure the part of the cost of your home that can be depreciated (depreciable basis). Where to send 2011 tax return The depreciable basis is figured by multiplying the percentage of your home used for business by the smaller of the following. Where to send 2011 tax return The adjusted basis of your home (excluding land) on the date you began using your home for business. Where to send 2011 tax return The fair market value of your home (excluding land) on the date you began using your home for business. Where to send 2011 tax return Depreciation table. Where to send 2011 tax return   If 2013 was the first year you used your home for business, you can figure your 2013 depreciation for the business part of your home by using the appropriate percentage from the following table. Where to send 2011 tax return Table 2. Where to send 2011 tax return MACRS Percentage Table for 39-Year Nonresidential Real Property Month First Used for Business Percentage To Use 1 2. Where to send 2011 tax return 461% 2 2. Where to send 2011 tax return 247% 3 2. Where to send 2011 tax return 033% 4 1. Where to send 2011 tax return 819% 5 1. Where to send 2011 tax return 605% 6 1. Where to send 2011 tax return 391% 7 1. Where to send 2011 tax return 177% 8 0. Where to send 2011 tax return 963% 9 0. Where to send 2011 tax return 749% 10 0. Where to send 2011 tax return 535% 11 0. Where to send 2011 tax return 321% 12 0. Where to send 2011 tax return 107%   Multiply the depreciable basis of the business part of your home by the percentage from the table for the first month you use your home for business. Where to send 2011 tax return See Publication 946 for the percentages for the remaining tax years of the recovery period. Where to send 2011 tax return Example. Where to send 2011 tax return In May, George Miller began to use one room in his home exclusively and regularly to meet clients. Where to send 2011 tax return This room is 8% of the square footage of his home. Where to send 2011 tax return He bought the home in 2003 for $125,000. Where to send 2011 tax return He determined from his property tax records that his adjusted basis in the house (exclusive of land) is $115,000. Where to send 2011 tax return In May, the house had a fair market value of $165,000. Where to send 2011 tax return He multiplies his adjusted basis of $115,000 (which is less than the fair market value) by 8%. Where to send 2011 tax return The result is $9,200, his depreciable basis for the business part of the house. Where to send 2011 tax return George files his return based on the calendar year. Where to send 2011 tax return May is the 5th month of his tax year. Where to send 2011 tax return He multiplies his depreciable basis of $9,200 by 1. Where to send 2011 tax return 605% (. Where to send 2011 tax return 01605), the percentage from the table for the 5th month. Where to send 2011 tax return His depreciation deduction is $147. Where to send 2011 tax return 66. Where to send 2011 tax return Depreciating permanent improvements. Where to send 2011 tax return   Add the costs of permanent improvements made before you began using your home for business to the basis of your property. Where to send 2011 tax return Depreciate these costs as part of the cost of your home as explained earlier. Where to send 2011 tax return The costs of improvements made after you begin using your home for business (that affect the business part of your home, such as a new roof) are depreciated separately. Where to send 2011 tax return Multiply the cost of the improvement by the business-use percentage and depreciate the result over the recovery period that would apply to your home if you began using it for business at the same time as the improvement. Where to send 2011 tax return For improvements made this year, the recovery period is 39 years. Where to send 2011 tax return For the percentage to use for the first year, see Table 2, earlier. Where to send 2011 tax return For more information on recovery periods, see Publication 946. Where to send 2011 tax return Business Percentage To find the business percentage, compare the size of the part of your home that you use for business to your whole house. Where to send 2011 tax return Use the resulting percentage to figure the business part of the expenses for operating your entire home. Where to send 2011 tax return You can use any reasonable method to determine the business percentage. Where to send 2011 tax return The following are two commonly used methods for figuring the percentage. Where to send 2011 tax return Divide the area (length multiplied by the width) used for business by the total area of your home. Where to send 2011 tax return If the rooms in your home are all about the same size, you can divide the number of rooms used for business by the total number of rooms in your home. Where to send 2011 tax return Example 1. Where to send 2011 tax return Your office is 240 square feet (12 feet × 20 feet). Where to send 2011 tax return Your home is 1,200 square feet. Where to send 2011 tax return Your office is 20% (240 ÷ 1,200) of the total area of your home. Where to send 2011 tax return Your business percentage is 20%. Where to send 2011 tax return Example 2. Where to send 2011 tax return You use one room in your home for business. Where to send 2011 tax return Your home has 10 rooms, all about equal size. Where to send 2011 tax return Your office is 10% (1 ÷ 10) of the total area of your home. Where to send 2011 tax return Your business percentage is 10%. Where to send 2011 tax return Use lines 1-7 of Form 8829, or lines 1-3 on the Worksheet To Figure the Deduction for Business Use of Your Home (near the end of this publication) to figure your business percentage. Where to send 2011 tax return Deduction Limit If your gross income from the business use of your home equals or exceeds your total business expenses (including depreciation), you can deduct all your business expenses related to the use of your home. Where to send 2011 tax return If your gross income from the business use of your home is less than your total business expenses, your deduction for certain expenses for the business use of your home is limited. Where to send 2011 tax return Your deduction of otherwise nondeductible expenses, such as insurance, utilities, and depreciation of your home (with depreciation of your home taken last), that are allocable to the business, is limited to the gross income from the business use of your home minus the sum of the following. Where to send 2011 tax return The business part of expenses you could deduct even if you did not use your home for business (such as mortgage interest, real estate taxes, and casualty and theft losses that are allowable as itemized deductions on Schedule A (Form 1040)). Where to send 2011 tax return These expenses are discussed in detail under Actual Expenses , earlier. Where to send 2011 tax return The business expenses that relate to the business activity in the home (for example, business phone, supplies, and depreciation on equipment), but not to the use of the home itself. Where to send 2011 tax return If you are self-employed, do not include in (2) above your deduction for one-half of your self-employment tax. Where to send 2011 tax return Carryover of unallowed expenses. Where to send 2011 tax return   If your deductions are greater than the current year's limit, you can carry over the excess to the next year in which you use actual expenses. Where to send 2011 tax return They are subject to the deduction limit for that year, whether or not you live in the same home during that year. Where to send 2011 tax return Figuring the deduction limit and carryover. Where to send 2011 tax return   If you are an employee or a partner, or you file Schedule F (Form 1040), use the Worksheet To Figure the Deduction for Business Use of Your Home, near the end of this publication. Where to send 2011 tax return If you file Schedule C (Form 1040), figure your deduction limit and carryover on Form 8829. Where to send 2011 tax return Example. Where to send 2011 tax return You meet the requirements for deducting expenses for the business use of your home. Where to send 2011 tax return You use 20% of your home for business. Where to send 2011 tax return In 2013, your business expenses and the expenses for the business use of your home are deducted from your gross income in the following order. Where to send 2011 tax return    Gross income from business $6,000 Minus:   Deductible mortgage interest and real estate taxes (20%) 3,000 Business expenses not related to the use of your home (100%) (business phone, supplies, and depreciation on equipment) 2,000 Deduction limit $1,000 Minus other expenses allocable to business use of home:   Maintenance, insurance, and utilities (20%) 800 Depreciation allowed (20% = $1,600 allowable, but subject to balance of deduction limit) 200 Other expenses up to the deduction limit $1,000 Depreciation carryover to 2014 ($1,600 − $200) (subject to deduction limit in 2014) $1,400   You can deduct all of the business part of your deductible mortgage interest and real estate taxes ($3,000). Where to send 2011 tax return You also can deduct all of your business expenses not related to the use of your home ($2,000). Where to send 2011 tax return Additionally, you can deduct all of the business part of your expenses for maintenance, insurance, and utilities, because the total ($800) is less than the $1,000 deduction limit. Where to send 2011 tax return Your deduction for depreciation for the business use of your home is limited to $200 ($1,000 minus $800) because of the deduction limit. Where to send 2011 tax return You can carry over the $1,400 balance and add it to your depreciation for 2014, subject to your deduction limit in 2014. Where to send 2011 tax return More than one place of business. Where to send 2011 tax return   If part of the gross income from your trade or business is from the business use of part of your home and part is from a place other than your home, you must determine the part of your gross income from the business use of your home before you figure the deduction limit. Where to send 2011 tax return In making this determination, consider the time you spend at each location, the business investment in each location, and any other relevant facts and circumstances. Where to send 2011 tax return If your home office qualifies as your principal place of business, you can deduct your daily transportation costs between your home and another work location in the same trade or business. Where to send 2011 tax return For more information on transportation costs, see Publication 463, Travel, Entertainment, Gift, and Car Expenses. Where to send 2011 tax return Using the Simplified Method The simplified method is an alternative to the calculation, allocation, and substantiation of actual expenses. Where to send 2011 tax return In most cases, you will figure your deduction by multiplying $5, the prescribed rate, by the area of your home used for a qualified business use. Where to send 2011 tax return The area you use to figure your deduction is limited to 300 square feet. Where to send 2011 tax return See Simplified Amount , later, for information about figuring the amount of the deduction. Where to send 2011 tax return For more information about the simplified method, see Revenue Procedure 2013-13, 2013-06 I. Where to send 2011 tax return R. Where to send 2011 tax return B. Where to send 2011 tax return 478, available at www. Where to send 2011 tax return irs. Where to send 2011 tax return gov/irb/2013-06_IRB/ar09. Where to send 2011 tax return html. Where to send 2011 tax return Actual expenses and depreciation of your home. Where to send 2011 tax return   If you elect to use the simplified method, you cannot deduct any actual expenses for the business except for business expenses that are not related to the use of the home. Where to send 2011 tax return You also cannot deduct any depreciation (including any additional first-year depreciation) or section 179 expense for the portion of the home that is used for a qualified business use. Where to send 2011 tax return The depreciation deduction allowable for that portion of the home is deemed to be zero for a year you use the simplified method. Where to send 2011 tax return If you figure your deduction for business use of the home using actual expenses in a subsequent year, you will have to use the appropriate optional depreciation table for MACRS to figure your depreciation. Where to send 2011 tax return More information. Where to send 2011 tax return   For more information about claiming depreciation in a subsequent year, see Revenue Procedure 2013-13, 2013-06 I. Where to send 2011 tax return R. Where to send 2011 tax return B. Where to send 2011 tax return 478, available at www. Where to send 2011 tax return irs. Where to send 2011 tax return gov/irb/2013-06_IRB/ar09. Where to send 2011 tax return html. Where to send 2011 tax return See Publication 946 for the optional depreciation tables Although you cannot deduct any depreciation or section 179 expense for the portion of your home used for a qualified business use, you may still claim depreciation or the section 179 expense deduction on other assets used in the business (for example, furniture and equipment). Where to send 2011 tax return Expenses deductible without regard to business use. Where to send 2011 tax return   When using the simplified method, treat as personal expenses those business expenses related to the use of the home that are deductible without regard to whether there is a qualified business use of the home. Where to send 2011 tax return These expenses include mortgage interest, real estate taxes, and casualty losses, subject to any limitations. Where to send 2011 tax return See Where To Deduct , later. Where to send 2011 tax return If you also rent part of your home, you must still allocate these expenses between rental use and personal use (for this purpose, personal use includes business use reported using the simplified method). Where to send 2011 tax return No deduction of carryover of actual expenses. Where to send 2011 tax return   If you used actual expenses to figure your deduction for business use of the home in a prior year and your deduction was limited, you cannot deduct the disallowed amount carried over from the prior year during a year you figure your deduction using the simplified method. Where to send 2011 tax return Instead, you will continue to carry over the disallowed amount to the next year that you use actual expenses to figure your deduction. Where to send 2011 tax return Electing the Simplified Method You choose whether or not to figure your deduction using the simplified method each taxable year. Where to send 2011 tax return Make the election for a home by using the simplified method to figure the deduction for the qualified business use of that home on a timely filed, original federal income tax return. Where to send 2011 tax return An election for a taxable year, once made, is irrevocable. Where to send 2011 tax return A change from using the simplified method in one year to actual expenses in a succeeding taxable year, or vice-versa, is not a change in method of accounting and does not require the consent of the Commissioner. Where to send 2011 tax return Shared use. Where to send 2011 tax return   If you share your home with someone else who also uses the home in a business that qualifies for this deduction, each of you make your own election. Where to send 2011 tax return More than one qualified business use. Where to send 2011 tax return   If you conduct more than one business that qualifies for this deduction in your home, your election to use the simplified method applies to all your qualified business uses of that home. Where to send 2011 tax return More than one home. Where to send 2011 tax return   If you used more than one home during the year (for example, you moved during the year), you can elect to use the simplified method for only one of the homes. Where to send 2011 tax return You must figure the deduction for any other home using actual expenses. Where to send 2011 tax return Simplified Amount Your deduction for the qualified business use of a home is the sum of each amount you figure for a separate qualified business use of your home. Where to send 2011 tax return To figure your deduction for the business use of a home using the simplified method, you will need to know the following information for each qualified business use of the home. Where to send 2011 tax return The allowable area of your home used in conducting the business. Where to send 2011 tax return If you did not conduct the business for the entire year in the home or the area changed during the year, you will need to know the allowable area you used and the number of days you conducted the business for each month. Where to send 2011 tax return The gross income from the business use of your home. Where to send 2011 tax return The amount of the business expenses that are not related to the use of your home. Where to send 2011 tax return If the qualified business use is for a daycare facility that uses space in your home on a regular (but not exclusive) basis, you will also need to know the percentage of time that part of your home is used for daycare. Where to send 2011 tax return To figure the amount you can deduct for qualified business use of your home using the simplified method, follow these 3 steps. Where to send 2011 tax return Multiply the allowable area by $5 (or less than $5 if the qualified business use is for a daycare that uses space in your home on a regular, but not exclusive, basis). Where to send 2011 tax return See Allowable area and Space used regularly for daycare , later. Where to send 2011 tax return Subtract the expenses from the business that are not related to the use of the home from the gross income related to the business use of the home. Where to send 2011 tax return If these expenses are greater than the gross income from the business use of the home, then you cannot take a deduction for this business use of the home. Where to send 2011 tax return See Gross income limitation , later. Where to send 2011 tax return Take the smaller of the amounts from (1) and (2). Where to send 2011 tax return This is the amount you can deduct for this qualified business use of your home using the simplified method. Where to send 2011 tax return If you are an employee or a partner, or you use your home in your farming business and file Schedule F (Form 1040), you can use the Simplified Method Worksheet, near the end of this publication, to help you figure your deduction. Where to send 2011 tax return If you use your home in a trade or business and you file Schedule C (Form 1040), you will use the Simplified Method Worksheet in your Instructions for Schedule C to figure your deduction. Where to send 2011 tax return Allowable area. Where to send 2011 tax return   In most cases, the allowable area is the smaller of the actual area (in square feet) of your home used in conducting the business and 300 square feet. Where to send 2011 tax return Your allowable area may be smaller if you conducted the business as a qualified joint venture with your spouse, the area used by the business was shared with another qualified business use, you used the home for the business for only part of the year, or the area used by the business changed during the year. Where to send 2011 tax return You can use the Area Adjustment Worksheet (for simplified method), near the end of this publication, to help you figure your allowable area for a qualified business use. Where to send 2011 tax return Area used by a qualified joint venture. Where to send 2011 tax return   If the qualified business use of the home is also a qualified joint venture, you and your spouse will figure the deduction for the business use separately. Where to send 2011 tax return Split the actual area used in conducting business between you and your spouse in the same manner you split your other tax attributes. Where to send 2011 tax return Then, each spouse will figure the allowable area separately. Where to send 2011 tax return For more information about qualified joint ventures, see Qualified Joint Venture in the Instructions for Schedule C. Where to send 2011 tax return Shared use. Where to send 2011 tax return   If you share your home with someone else who uses the home to conduct business that also qualifies for this deduction, you may not include the same square feet to figure your deduction as the other person. Where to send 2011 tax return You must allocate the shared space between you and the other person in a reasonable manner. Where to send 2011 tax return Example. Where to send 2011 tax return Kristin and Lindsey are roommates. Where to send 2011 tax return Kristin uses 300 square feet of their home for a qualified business use. Where to send 2011 tax return Lindsey uses 200 square feet of their home for a separate qualified business use. Where to send 2011 tax return The qualified business uses share 100 square feet. Where to send 2011 tax return In addition to the portion that they do not share, Kristin and Lindsey can both claim 50 of the 100 square feet or divide the 100 square feet between them in any reasonable manner. Where to send 2011 tax return If divided evenly, Kristin could claim 250 square feet using the simplified method and Lindsey could claim 150 square feet. Where to send 2011 tax return More than one qualified business use. Where to send 2011 tax return   If you conduct more than one business qualifying for the deduction, you are limited to a maximum of 300 square feet for all of the businesses. Where to send 2011 tax return Allocate the actual square footage used (up to the maximum of 300 square feet) among your qualified business uses in a reasonable manner. Where to send 2011 tax return However, do not allocate more square feet to a qualified business use than you actually use for that business. Where to send 2011 tax return Rental use. Where to send 2011 tax return   The simplified method does not apply to rental use. Where to send 2011 tax return A rental use that qualifies for the deduction must be figured using actual expenses. Where to send 2011 tax return If the rental use and a qualified business use share the same area, you will have to allocate the actual area used between the two uses. Where to send 2011 tax return You cannot use the same area to figure a deduction for the qualified business use as you are using to figure the deduction for the rental use. Where to send 2011 tax return Part-year use or area changes. Where to send 2011 tax return   If your qualified business use was for a portion of the taxable year (for example, a seasonal business or a business that begins during the taxable year) or you changed the square footage of your qualified business use, your deduction is limited to the average monthly allowable square footage. Where to send 2011 tax return You calculate the average monthly allowable square footage by adding the amount of allowable square feet you used in each month and dividing the sum by 12. Where to send 2011 tax return When determining the average monthly allowable square footage, you cannot take more than 300 square feet into account for any one month. Where to send 2011 tax return Additionally, if your qualified business use was less than 15 days in a month, you must use -0- for that month. Where to send 2011 tax return Example 1. Where to send 2011 tax return Andy files his federal income tax return on a calendar year basis. Where to send 2011 tax return On July 20, he began using 420 square feet of his home for a qualified business use. Where to send 2011 tax return He continued to use the 420 square feet until the end of the year. Where to send 2011 tax return His average monthly allowable square footage is 125 square feet, which is figured using 300 square feet for each month August through December divided by the number of months in the taxable year ((0 + 0 + 0 + 0 + 0 + 0 + 0 + 300 + 300 + 300 + 300 + 300)/12). Where to send 2011 tax return Example 2. Where to send 2011 tax return Amy files her federal income tax return on a calendar year basis. Where to send 2011 tax return On April 20, she began using 100 square feet of her home for a qualified business use. Where to send 2011 tax return On August 5, she expanded the area of her qualified use to 330 square feet. Where to send 2011 tax return Amy continued to use the 330 square feet until the end of the year. Where to send 2011 tax return Her average monthly allowable square footage is 150 square feet, which is figured using 100 square feet for May through July and 300 square feet for August through December divided by the number of months in the taxable year ((0 + 0 + 0 + 0 + 100 + 100 +100 + 300 + 300 + 300 + 300 + 300)/12). Where to send 2011 tax return Gross income limitation. Where to send 2011 tax return   Your deduction for business use of the home is limited to an amount equal to the gross income derived from the qualified business use of the home reduced by the business deductions that are unrelated to the use of your home. Where to send 2011 tax return If the business deductions that are unrelated to the use of your home are greater than the gross income derived from the qualified business use of your home, then you cannot take a deduction for this qualified business use of your home. Where to send 2011 tax return Business expenses not related to use of the home. Where to send 2011 tax return   These expenses relate to the business activity in the home, but not to the use of the home itself. Where to send 2011 tax return You can still deduct business expenses that are unrelated to the use of the home. Where to send 2011 tax return See Where To Deduct , later. Where to send 2011 tax return Examples of business expenses that are unrelated to the use of the home are advertising, wages, supplies, dues, and depreciation for equipment. Where to send 2011 tax return Space used regularly for daycare. Where to send 2011 tax return   If you do not use the area of your home exclusively for daycare, you must reduce the prescribed rate (maximum $5 per square foot) before figuring your deduction. Where to send 2011 tax return The reduced rate will equal the prescribed rate times a fraction. Where to send 2011 tax return The numerator of the fraction is the number of hours that the space was used during the year for daycare and the denominator is the total number of hours during the year that the space was available for all uses. Where to send 2011 tax return You can use the Daycare Facility Worksheet (for simplified method), near the end of this publication, to help you figure the reduced rate. Where to send 2011 tax return    If you used at least 300 square feet for daycare regularly and exclusively during the year, then you do not need to reduce the prescribed rate or complete the Daycare Facility Worksheet. Where to send 2011 tax return Daycare Facility If you use space in your home on a regular basis for providing daycare, you may be able to claim a deduction for that part of your home even if you use the same space for nonbusiness purposes. Where to send 2011 tax return To qualify for this exception to the exclusive use rule, you must meet both of the following requirements. Where to send 2011 tax return You must be in the trade or business of providing daycare for children, persons age 65 or older, or persons who are physically or mentally unable to care for themselves. Where to send 2011 tax return You must have applied for, been granted, or be exempt from having, a license, certification, registration, or approval as a daycare center or as a family or group daycare home under state law. Where to send 2011 tax return You do not meet this requirement if your application was rejected or your license or other authorization was revoked. Where to send 2011 tax return Figuring the deduction. Where to send 2011 tax return   If you elect to use the simplified method for your home, figure your deduction as described earlier in Using the Simplified Method under Figuring the Deduction. Where to send 2011 tax return    If you are figuring your deduction using actual expenses and you regularly use part of your home for daycare, figure what part is used for daycare, as explained in Business Percentage , earlier, under Figuring the Deduction. Where to send 2011 tax return If you also use that part exclusively for daycare, deduct all the allocable expenses, subject to the deduction limit, as explained earlier. Where to send 2011 tax return   If the use of part of your home as a daycare facility is regular, but not exclusive, you must figure the percentage of time that part of your home is used for daycare. Where to send 2011 tax return A room that is available for use throughout each business day and that you regularly use in your business is considered to be used for daycare throughout each business day. Where to send 2011 tax return You do not have to keep records to show the specific hours the area was used for business. Where to send 2011 tax return You can use the area occasionally for personal reasons. Where to send 2011 tax return However, a room you use only occasionally for business does not qualify for the deduction. Where to send 2011 tax return To find the percentage of time you actually use your home for business, compare the total time used for business to the total time that part of your home can be used for all purposes. Where to send 2011 tax return You can compare the hours of business use in a week with the number of hours in a week (168). Where to send 2011 tax return Or you can compare the hours of business use for the year with the number of hours in the year (8,760 in 2013). Where to send 2011 tax return If you started or stopped using your home for daycare in 2013, you must prorate the number of hours based on the number of days the home was available for daycare. Where to send 2011 tax return Example 1. Where to send 2011 tax return Mary Lake used her basement to operate a daycare business for children. Where to send 2011 tax return She figures the business percentage of the basement as follows. Where to send 2011 tax return Square footage of the basement Square footage of her home = 1,600 3,200 = 50%           She used the basement for daycare an average of 12 hours a day, 5 days a week, for 50 weeks a year. Where to send 2011 tax return During the other 12 hours a day, the family could use the basement. Where to send 2011 tax return She figures the percentage of time the basement was used for daycare as follows. Where to send 2011 tax return Number of hours used for daycare (12 x 5 x 50) Total number of hours in the year (24 x 365) = 3,000 8,760 = 34. Where to send 2011 tax return 25%           Mary can deduct 34. Where to send 2011 tax return 25% of any direct expenses for the basement. Where to send 2011 tax return However, because her indirect expenses are for the entire house, she can deduct only 17. Where to send 2011 tax return 13% of the indirect expenses. Where to send 2011 tax return She figures the percentage for her indirect expenses as follows. Where to send 2011 tax return Business percentage of the basement 50% Multiplied by: Percentage of time used for daycare × 34. Where to send 2011 tax return 25% Percentage for indirect expenses 17. Where to send 2011 tax return 13% Mary completes Form 8829, Part I, figuring the percentage of her home used for business, including the percentage of time the basement was used. Where to send 2011 tax return In Part II, Mary figures her deductible expenses. Where to send 2011 tax return She uses the following information to complete Part II. Where to send 2011 tax return Gross income from her daycare business $50,000 Expenses not related to the business use of the home $25,000 Tentative profit $25,000 Rent $8,400 Utilities $850 Painting the basement $500 Mary enters her tentative profit, $25,000, on line 8. Where to send 2011 tax return (This figure is the same as the amount on line 29 of her Schedule C (Form 1040). Where to send 2011 tax return ) The expenses she paid for rent and utilities relate to her entire home. Where to send 2011 tax return Therefore, she enters the amount paid for rent on line 18, column (b), and the amount paid for utilities on line 20, column (b). Where to send 2011 tax return She shows the total of these expenses on line 22, column (b). Where to send 2011 tax return For line 23, she multiplies the amount on line 22, column (b) by the percentage on line 7 and enters the result, $1,585. Where to send 2011 tax return Mary paid $500 to have the basement painted. Where to send 2011 tax return The painting is a direct expense. Where to send 2011 tax return However, because she did not use the basement exclusively for daycare, she must multiply $500 by the percentage of time the basement was used for daycare (34. Where to send 2011 tax return 25% – line 6). Where to send 2011 tax return She enters $171 (34. Where to send 2011 tax return 25% × $500) on line 19, column (a). Where to send 2011 tax return She adds line 22, column (a), and line 23 and enters $1,756 ($171 + $1,585) on line 25. Where to send 2011 tax return This is less than her deduction limit (line 15), so she can deduct the entire amount. Where to send 2011 tax return She follows the instructions to complete the rest of Part II and enters $1,756 on lines 33 and 35. Where to send 2011 tax return She then carries the $1,756 to line 30 of her Schedule C (Form 1040). Where to send 2011 tax return Example 2. Where to send 2011 tax return Assume the same facts as in Example 1 except that Mary also has another room that was available each business day for children to take naps in. Where to send 2011 tax return Although she did not keep a record of the number of hours the room was actually used for naps, it was used for part of each business day. Where to send 2011 tax return Since the room was available for business use during regular operating hours each business day and was used regularly in the business, it is considered used for daycare throughout each business day. Where to send 2011 tax return The basement and room are 60% of the total area of her home. Where to send 2011 tax return In figuring her expenses, 34. Where to send 2011 tax return 25% of any direct expenses for the basement and room are deductible. Where to send 2011 tax return In addition, 20. Where to send 2011 tax return 55% (34. Where to send 2011 tax return 25% × 60%) of her indirect expenses are deductible. Where to send 2011 tax return Example 3. Where to send 2011 tax return Assume the same facts as in Example 1 except that Mary stopped using her home for a daycare facility on June 24, 2013. Where to send 2011 tax return She used the basement for daycare an average of 12 hours a day, 5 days a week, but for only 25 weeks of the year. Where to send 2011 tax return During the other 12 hours a day, the family could still use the basement. Where to send 2011 tax return She figures the percentage of time the basement was used for business as follows. Where to send 2011 tax return Number of hours used for daycare (12 x 5 x 25) Total number of hours during period used (24 x 175) = 1,500 4,200 = 35. Where to send 2011 tax return 71%           Mary can deduct 35. Where to send 2011 tax return 71% of any direct expenses for the basement. Where to send 2011 tax return However, because her indirect expenses are for the entire house, she can deduct only 17. Where to send 2011 tax return 86% of the indirect expenses. Where to send 2011 tax return She figures the percentage for her indirect expenses as follows. Where to send 2011 tax return Business percentage of the basement 50% Multiplied by: Percentage of time used for daycare × 35. Where to send 2011 tax return 71% Percentage for indirect expenses 17. Where to send 2011 tax return 86% Meals. Where to send 2011 tax return   If you provide food for your daycare recipients, do not include the expense as a cost of using your home for business. Where to send 2011 tax return Claim it as a separate deduction on your Schedule C (Form 1040). Where to send 2011 tax return You can never deduct the cost of food consumed by you or your family. Where to send 2011 tax return You can deduct as a business expense 100% of the actual cost of food consumed by your daycare recipients (see Standard meal and snack rates , later, for an optional method for eligible children) and generally only 50% of the cost of food consumed by your employees. Where to send 2011 tax return However, you can deduct 100% of the cost of food consumed by your employees if its value can be excluded from their wages as a de minimis fringe benefit. Where to send 2011 tax return For more information on meals that meet these requirements, see Meals in chapter 2 of Publication 15-B, Employer's Tax Guide to Fringe Benefits. Where to send 2011 tax return   If you deduct the actual cost of food for your daycare business, keep a separate record (with receipts) of your family's food costs. Where to send 2011 tax return   Reimbursements you receive from a sponsor under the Child and Adult Care Food Program of the Department of Agriculture are taxable only to the extent they exceed your expenses for food for eligible children. Where to send 2011 tax return If your reimbursements are more than your expenses for food, show the difference as income in Part I of Schedule C (Form 1040). Where to send 2011 tax return If your food expenses are greater than the reimbursements, show the difference as an expense in Part V of Schedule C (Form 1040). Where to send 2011 tax return Do not include payments or expenses for your own children if they are eligible for the program. Where to send 2011 tax return Follow this procedure even if you receive a Form 1099-MISC, Miscellaneous Income, reporting a payment from the sponsor. Where to send 2011 tax return Standard meal and snack rates. Where to send 2011 tax return   If you qualify as a family daycare provider, you can use the standard meal and snack rates, instead of actual costs, to compute the deductible cost of meals and snacks provided to eligible children. Where to send 2011 tax return For these purposes: A family daycare provider is a person engaged in the business of providing family daycare. Where to send 2011 tax return Family daycare is childcare provided to eligible children in the home of the family daycare provider. Where to send 2011 tax return The care must be non-medical, not involve a transfer of legal custody, and generally last less than 24 hours each day. Where to send 2011 tax return Eligible children are minor children receiving family daycare in the home of the family daycare provider. Where to send 2011 tax return Eligible children do not include children who are full-time or part-time residents in the home where the childcare is provided or children whose parents or guardians are residents of the same home. Where to send 2011 tax return Eligible children do not include children who receive daycare services for personal reasons of the provider. Where to send 2011 tax return For example, if a provider provides daycare services for a relative as a favor to that relative, that child is not an eligible child. Where to send 2011 tax return   You can compute the deductible cost of each meal and snack you actually purchased and served to an eligible child during the time period you provided family daycare using the standard meal and snack rates shown in Table 3, later. Where to send 2011 tax return You can use the standard meal and snack rates for a maximum of one breakfast, one lunch, one dinner, and three snacks per eligible child per day. Where to send 2011 tax return If you receive reimbursement for a particular meal or snack, you can deduct only the portion of the applicable standard meal or snack rate that is more than the amount of the reimbursement. Where to send 2011 tax return   You can use either the standard meal and snack rates or actual costs to calculate the deductible cost of food provided to eligible children in the family daycare for any particular tax year. Where to send 2011 tax return If you choose to use the standard meal and snack rates for a particular tax year, you must use the rates for all your deductible food costs for eligible children during that tax year. Where to send 2011 tax return However, if you use the standard meal and snack rates in any tax year, you can use actual costs to compute the deductible cost of food in any other tax year. Where to send 2011 tax return   If you use the standard meal and snack rates, you must maintain records to substantiate the computation of the total amount deducted for the cost of food provided to eligible children. Where to send 2011 tax return The records kept should include the name of each child, dates and hours of attendance in the daycare, and the type and quantity of meals and snacks served. Where to send 2011 tax return This information can be recorded in a log similar to the one shown in Exhibit A, near the end of this publication. Where to send 2011 tax return   The standard meal and snack rates include beverages, but do not include non-food supplies used for food preparation, service, or storage, such as containers, paper products, or utensils. Where to send 2011 tax return These expenses can be claimed as a separate deduction on your Schedule C (Form 1040). Where to send 2011 tax return     Table 3. Where to send 2011 tax return Standard Meal and Snack Rates1 Location of Family Daycare Provider Breakfast Lunch Dinner Snack States other than Alaska an
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The Where To Send 2011 Tax Return

Where to send 2011 tax return Publication 4492-B - Main Content Table of Contents DefinitionsMidwestern Disaster Areas Applicable Disaster Date Charitable Giving IncentivesTemporary Suspension of Limits on Charitable Contributions Standard Mileage Rate for Charitable Use of Vehicles Mileage Reimbursements to Charitable Volunteers Casualty and Theft LossesTime limit for making election. Where to send 2011 tax return Replacement Period for Nonrecognition of Gain Net Operating Losses IRAs and Other Retirement PlansDefinitions Taxation of Qualified Disaster Recovery Assistance Distributions Repayment of Qualified Disaster Recovery Assistance Distributions Repayment of Qualified Distributions for the Purchase or Construction of a Main Home Loans From Qualified Plans Additional Tax Relief for IndividualsEarned Income Credit and Child Tax Credit Additional Exemption for Housing Individuals Displaced by the Severe Storms, Tornadoes, or Flooding Education Credits Recapture of Federal Mortgage Subsidy Exclusion of Certain Cancellations of Indebtedness by Reason of the Severe Storms, Tornadoes, or Flooding Tax Relief for Temporary Relocation Additional Tax Relief for BusinessesEmployee Retention Credit Employer Housing Credit and Exclusion Demolition and Clean-up Costs Increase in Rehabilitation Tax Credit Request for Copy or Transcript of Tax Return How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). Where to send 2011 tax return Definitions The following definitions are used throughout this publication. Where to send 2011 tax return Midwestern Disaster Areas A Midwestern disaster area is an area for which a major disaster was declared by the President during the period beginning on May 20, 2008, and ending on July 31, 2008, in the state of Arkansas, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, or Wisconsin, as a result of severe storms, tornadoes, or flooding that occurred on the applicable disaster date. Where to send 2011 tax return See Tables 1 and 2 for a list of the counties included in the Midwestern disaster areas. Where to send 2011 tax return Applicable Disaster Date The term “applicable disaster date” as used in this publication, refers to the date on which the severe storms, tornadoes, or flooding occurred in the Midwestern disaster areas. Where to send 2011 tax return You will need to know this date when using this publication for the various tax provisions. Where to send 2011 tax return Table 1 The counties listed in Table 1 below are eligible for all tax provisions shown in this publication. Where to send 2011 tax return Applicable Disaster Dates* State Affected Counties—Midwestern Disaster Areas 05/02/2008through05/12/2008 Arkansas Arkansas, Benton, Cleburne, Conway, Crittenden, Grant, Lonoke, Mississippi, Phillips, Pulaski, Saline, and Van Buren. Where to send 2011 tax return 06/01/2008through07/22/2008 Illinois Adams, Calhoun, Clark, Coles, Crawford, Cumberland, Douglas, Edgar, Hancock, Henderson, Jasper, Jersey, Lake, Lawrence, Mercer, Rock Island, Whiteside, and Winnebago. Where to send 2011 tax return 05/30/2008through06/27/2008 Indiana Adams, Bartholomew, Brown, Clay, Daviess, Dearborn, Decatur, Gibson, Grant, Greene, Hamilton, Hancock, Hendricks, Henry, Huntington, Jackson, Jefferson, Jennings, Johnson, Knox, Lawrence, Madison, Marion, Monroe, Morgan, Owen, Parke, Pike, Posey, Putnam, Randolph, Ripley, Rush, Shelby, Sullivan, Tippecanoe, Vermillion, Vigo, Washington, and Wayne. Where to send 2011 tax return 05/25/2008through08/13/2008 Iowa Adair, Adams, Allamakee, Appanoose, Audubon, Benton, Black Hawk, Boone, Bremer, Buchanan, Butler, Cass, Cedar, Cerro Gordo, Chickasaw, Clarke, Clayton, Clinton, Crawford, Dallas, Davis, Decatur, Delaware, Des Moines, Dubuque, Fayette, Floyd, Franklin, Fremont, Greene, Grundy, Guthrie, Hamilton, Hancock, Hardin, Harrison, Henry, Howard, Humboldt, Iowa, Jackson, Jasper, Johnson, Jones, Keokuk, Kossuth, Lee, Linn, Louisa, Lucas, Madison, Mahaska, Marion, Marshall, Mills, Mitchell, Monona, Monroe, Montgomery, Muscatine, Page, Polk, Pottawattamie, Poweshiek, Ringgold, Scott, Story, Tama, Union, Van Buren, Wapello, Warren, Washington, Webster, Winnebago, Winneshiek, Worth, and Wright. Where to send 2011 tax return 05/10/2008through05/11/2008 Missouri Barry, Jasper, and Newton. Where to send 2011 tax return 06/01/2008through08/13/2008 Missouri Adair, Andrew, Callaway, Cass, Chariton, Clark, Gentry, Greene, Harrison, Holt, Johnson, Lewis, Lincoln, Linn, Livingston, Macon, Marion, Monroe, Nodaway, Pike, Putnam, Ralls, St. Where to send 2011 tax return Charles, Stone, Taney, Vernon, and Webster. Where to send 2011 tax return 05/22/2008through06/24/2008 Nebraska Buffalo, Butler, Colfax, Custer, Dawson, Douglas, Gage, Hamilton, Holt, Jefferson, Kearney, Lancaster, Platte, Richardson, Sarpy, and Saunders. Where to send 2011 tax return 06/05/2008through07/25/2008 Wisconsin Adams, Calumet, Crawford, Columbia, Dane, Dodge, Fond du Lac, Grant, Green, Green Lake, Iowa, Jefferson, Juneau, Kenosha, La Crosse, Manitowoc, Marquette, Milwaukee, Monroe, Ozaukee, Racine, Richland, Rock, Sauk, Sheboygan, Vernon, Walworth, Washington, Waukesha, and Winnebago. Where to send 2011 tax return *For more details, go to www. Where to send 2011 tax return fema. Where to send 2011 tax return gov Table 2 The counties listed in Table 2 below are eligible for all of the special tax provisions shown in this publication except the following. Where to send 2011 tax return Charitable Giving Incentives. Where to send 2011 tax return Net Operating Losses. Where to send 2011 tax return Education Credits. Where to send 2011 tax return Recapture of Federal Mortgage Subsidy. Where to send 2011 tax return Tax Relief for Temporary Relocation. Where to send 2011 tax return Employee Retention Credit. Where to send 2011 tax return Employer Housing Credit and Exclusion. Where to send 2011 tax return Demolition and Clean-up Costs. Where to send 2011 tax return Increase in Rehabilitation Credit. Where to send 2011 tax return Applicable Disaster Dates* State Affected Counties—Midwestern Disaster Areas 06/01/2008through07/22/2008 Illinois Greene, Madison, Monroe, Pike, Randolph, St. Where to send 2011 tax return Clair, and Scott. Where to send 2011 tax return 05/30/2008through06/27/2008 Indiana Benton, Boone, Fountain, Franklin, Jay, Montgomery, Ohio, Switzerland, Union, and Wabash. Where to send 2011 tax return 05/25/2008through08/13/2008 Iowa Carroll, Cherokee, Lyon, Palo Alto, Pocahontas, Taylor, and Wayne. Where to send 2011 tax return 05/22/2008through06/16/2008 Kansas Barber, Barton, Bourbon, Brown, Butler, Chautauqua, Cherokee, Clark, Clay, Comanche, Cowley, Crawford, Decatur, Dickinson, Edwards, Elk, Ellis, Ellsworth, Franklin, Gove, Graham, Harper, Haskell, Hodgeman, Jackson, Jewell, Kingman, Kiowa, Lane, Linn, Logan, Mitchell, Montgomery, Ness, Norton, Osborne, Pawnee, Phillips, Pratt, Reno, Republic, Riley, Rooks, Rush, Saline, Seward, Sheridan, Smith, Stafford, Sumner, Thomas, Trego, Wallace, and Wilson. Where to send 2011 tax return 06/06/2008through06/13/2008 Michigan Allegan, Barry, Eaton, Ingham, Lake, Manistee, Mason, Missaukee, Osceola, Ottawa, Saginaw, and Wexford. Where to send 2011 tax return 06/06/2008through06/12/2008 Minnesota Cook, Fillmore, Freeborn, Houston, Mower, and Nobles. Where to send 2011 tax return 06/01/2008through08/13/2008 Missouri Atchison, Audrain, Bates, Buchanan, Cape Girardeau, Carroll, Christian, Daviess, Grundy, Howard, Jefferson, Knox, Mercer, Miller, Mississippi, Morgan, New Madrid, Pemiscot, Perry, Pettis, Platte, Polk, Randolph, Ray, Saline, Schuyler, Scotland, Shelby, St. Where to send 2011 tax return Genevieve, St. Where to send 2011 tax return Louis, the Independent City of St. Where to send 2011 tax return Louis, Scott, Sullivan, and Worth. Where to send 2011 tax return 04/23/2008through04/26/2008 Nebraska Gage, Johnson, Morrill, Nemaha, and Pawnee. Where to send 2011 tax return 05/22/2008through06/24/2008 Nebraska Adams, Blaine, Boone, Boyd, Brown, Burt, Cass, Chase, Cherry, Cuming, Dundy, Fillmore, Frontier, Furnas, Garfield, Gosper, Greeley, Hall, Hayes, Howard, Johnson, Keya Paha, Lincoln, Logan, Loup, Merrick, McPherson, Morrill, Nance, Nemaha, Otoe, Phelps, Polk, Red Willow, Rock, Saline, Seward, Sherman, Stanton, Thayer, Thomas, Thurston, Valley, Webster, Wheeler, and York. Where to send 2011 tax return 06/27/2008 Nebraska Dodge, Douglas, Sarpy, and Saunders. Where to send 2011 tax return 06/05/2008through07/25/2008 Wisconsin Lafayette. Where to send 2011 tax return * For more details, go to www. Where to send 2011 tax return fema. Where to send 2011 tax return gov Charitable Giving Incentives Temporary Suspension of Limits on Charitable Contributions This benefit applies only to the counties in Table 1. Where to send 2011 tax return Individuals. Where to send 2011 tax return   Qualified contributions are not subject to the overall limit on itemized deductions or the 50% of adjusted gross income (AGI) limit. Where to send 2011 tax return A qualified contribution is a charitable contribution paid in cash or by check to a 50% limit organization if you make an election to have the 50% limit not apply to these contributions. Where to send 2011 tax return   A qualified contribution must also meet all of the following requirements. Where to send 2011 tax return Be paid after May 1, 2008, and before January 1, 2009. Where to send 2011 tax return The contribution must be for relief efforts in one or more Midwestern disaster areas. Where to send 2011 tax return Documentation must be provided by the donee organization that the contribution was used (or will be used) for relief efforts in one or more Midwestern disaster areas. Where to send 2011 tax return   Your deduction for qualified contributions is limited to your AGI minus your deduction for all other charitable contributions. Where to send 2011 tax return You can carry over any contributions you are not able to deduct for 2008 because of this limit. Where to send 2011 tax return In 2009, the carryover of your unused qualified contributions is subject to the 50% of AGI limit. Where to send 2011 tax return Exception. Where to send 2011 tax return   Qualified contributions do not include contributions to certain private foundations described in section 509(a)(3) or contributions for the establishment of a new, or maintenance of an existing, donor advised fund. Where to send 2011 tax return Corporations. Where to send 2011 tax return   A corporation can elect to deduct qualified cash contributions without regard to the 10% of taxable income limit if the contributions were paid after May 1, 2008, and before January 1, 2009, to a qualified charitable organization (other than certain private foundations described in section 509(a)(3) or contributions for the establishment of a new, or maintenance of an existing, donor advised fund), for relief efforts in one or more Midwestern disaster areas. Where to send 2011 tax return Documentation must be provided by the donee organization that the contribution was used (or will be used) for relief efforts in one or more Midwestern disaster areas. Where to send 2011 tax return The corporation's deduction for these qualified contributions is limited to 100% of taxable income (as modified for the 10% limit) minus the corporation's deduction for all other charitable contributions. Where to send 2011 tax return Any qualified contributions over this limit can be carried over to the next 5 years, subject to the 10% of taxable income limit. Where to send 2011 tax return Partners and shareholders. Where to send 2011 tax return   Each partner in a partnership and each shareholder in an S corporation must make a separate election to have the appropriate limit not apply. Where to send 2011 tax return More information. Where to send 2011 tax return   For more information, see Publication 526 or Publication 542, Corporations. Where to send 2011 tax return Publication 526 includes a worksheet you can use to figure your deduction if any limits apply to your charitable contributions. Where to send 2011 tax return Standard Mileage Rate for Charitable Use of Vehicles This benefit applies only to the counties in Table 1. Where to send 2011 tax return The following are special standard mileage rates in effect for 2008 for the cost of operating your vehicle for providing charitable services related only to the severe storms, tornadoes, or flooding. Where to send 2011 tax return 36 cents per mile for the period beginning on the applicable disaster date through June 30, 2008. Where to send 2011 tax return 41 cents per mile for the period July 1 through December 31, 2008. Where to send 2011 tax return Mileage Reimbursements to Charitable Volunteers This benefit applies only to the counties in Table 1. Where to send 2011 tax return You can exclude from income amounts you receive as mileage reimbursements for the use of a private passenger vehicle for the benefit of a qualified charitable organization in providing relief related to the severe storms, tornadoes, or flooding during the period beginning on the applicable disaster date, and ending on December 31, 2008. Where to send 2011 tax return You cannot claim a deduction or credit for amounts you exclude. Where to send 2011 tax return You must keep records of miles driven, time, place (or use), and purpose of the mileage. Where to send 2011 tax return The amount you can exclude cannot exceed the standard business mileage rate (shown below) for expenses incurred during the following periods. Where to send 2011 tax return 50. Where to send 2011 tax return 5 cents per mile for the period beginning on the applicable disaster date through June 30, 2008. Where to send 2011 tax return 58. Where to send 2011 tax return 5 cents per mile for the period July 1 through December 31, 2008. Where to send 2011 tax return Casualty and Theft Losses This benefit applies to the counties in both Tables 1 and 2. Where to send 2011 tax return The following paragraphs explain changes to casualty and theft losses that were caused by the severe storms, tornadoes, or flooding in the Midwestern disaster areas. Where to send 2011 tax return For more information, see Publication 547. Where to send 2011 tax return Limits on personal casualty or theft losses. Where to send 2011 tax return   Losses of personal use property that arose in a Midwestern disaster area on or after the applicable disaster date are not subject to the $100 or 10% of AGI limits. Where to send 2011 tax return Qualifying losses include losses from casualties and thefts that arose in a Midwestern disaster area that were attributable to the severe storms, tornadoes, or flooding. Where to send 2011 tax return When completing Form 4684, do not include on line 17 any losses that arose in a Midwestern disaster area. Where to send 2011 tax return A loss arising in a Midwestern disaster area is not considered a loss attributable to a federally declared disaster for purposes of that line and cannot be added to your standard deduction. Where to send 2011 tax return When to deduct the loss. Where to send 2011 tax return   Casualty and theft losses are generally deductible only in the year the casualty occurred or the theft was discovered. Where to send 2011 tax return However, you can elect to deduct losses caused by the severe storms, tornadoes, or flooding on your return for the prior year. Where to send 2011 tax return Special instructions for individuals who elect to claim a Midwestern disaster area casualty or theft loss for 2007. Where to send 2011 tax return   Individuals filing or amending their 2007 tax return for casualty or theft losses that were attributable to the severe storms, tornadoes, or flooding should: Enter “Midwestern Disaster Area” at the top of Form 1040 or Form 1040X, and Complete the 2008 version of Form 4684. Where to send 2011 tax return Cross out “2008” and enter “2007” at the top of Form 4684. Where to send 2011 tax return Time limit for making election. Where to send 2011 tax return   You must make this election to claim your casualty or theft loss in 2007 by the later of the following dates. Where to send 2011 tax return The due date (without extensions) for filing your 2008 income tax return. Where to send 2011 tax return The due date (with extensions) for filing your 2007 income tax return. Where to send 2011 tax return Example. Where to send 2011 tax return If you are a calendar year individual taxpayer, you have until April 15, 2009, to amend your 2007 tax return to claim a casualty or theft loss that occurred during 2008. Where to send 2011 tax return Replacement Period for Nonrecognition of Gain This benefit applies to the counties in both Tables 1 and 2. Where to send 2011 tax return Generally, an involuntary conversion occurs when property is damaged, destroyed, stolen, seized, requisitioned, or condemned, and you receive other property or money in payment, such as insurance or a condemnation award. Where to send 2011 tax return Generally, you do not have to report a gain (if any) if you replace the property within 2 years (4 years for a main home in a federally declared disaster area). Where to send 2011 tax return However, for property that was involuntarily converted on or after the applicable disaster date, as a result of the severe storms, tornadoes, or flooding, a 5-year replacement period applies if substantially all of the use of the replacement property is in a Midwestern disaster area. Where to send 2011 tax return For more information, see the Instructions for Form 4684. Where to send 2011 tax return Net Operating Losses This benefit applies only to the counties in Table 1. Where to send 2011 tax return Qualified disaster recovery assistance loss. Where to send 2011 tax return   Generally, you can carry a net operating loss (NOL) back to the 2 tax years before the NOL year. Where to send 2011 tax return However, the portion of an NOL that is a qualified disaster recovery assistance loss can be carried back to the 5 tax years before the NOL year. Where to send 2011 tax return In addition, the 90% limit on the alternative tax NOL deduction (ATNOLD) does not apply to such portion of the ATNOLD. Where to send 2011 tax return   A qualified disaster recovery assistance loss is the smaller of: The excess of the NOL for the year over the specified liability loss for the year to which a 10-year carryback applies, or The total of the following deductions (to the extent they are taken into account in computing the NOL for the tax year): Qualified disaster recovery assistance casualty loss (as defined below), Moving expenses paid or incurred on or after the applicable disaster date, and before January 1, 2011, for the employment of an individual whose main home was in a Midwestern disaster area before the applicable disaster date, who was unable to remain in that home because of the severe storms, tornadoes, or flooding, and whose main job location (after the move) is in a Midwestern disaster area, Temporary housing expenses paid or incurred on or after the applicable disaster date, and before January 1, 2011, to house employees of the taxpayer whose main job location is in a Midwestern disaster area, Depreciation or amortization allowable for any qualified disaster recovery assistance property (even if you elected not to claim the special disaster recovery assistance depreciation allowance for such property) for the year placed in service, and Repair expenses (including expenses for the removal of debris) paid or incurred on or after the applicable disaster date, and before January 1, 2011, for any damage from the severe storms, tornadoes, or flooding to property located in a Midwestern disaster area. Where to send 2011 tax return Qualified disaster recovery assistance casualty loss. Where to send 2011 tax return   A qualified disaster recovery assistance casualty loss is any deductible section 1231 loss of property located in a Midwestern disaster area if the loss was caused by the severe storms, tornadoes, or flooding. Where to send 2011 tax return For this purpose, the amount of the loss is reduced by any recognized gain from an involuntary conversion caused by the severe storms, tornadoes, or flooding of property located in a Midwestern disaster area. Where to send 2011 tax return Any such loss taken into account in figuring your qualified disaster recovery assistance loss is not eligible for the election to be treated as having occurred in the previous tax year. Where to send 2011 tax return More information. Where to send 2011 tax return   For more information on NOLs, see Publication 536 or Publication 542, Corporations. Where to send 2011 tax return IRAs and Other Retirement Plans New rules provide for tax-favored withdrawals, repayments, and loans from certain retirement plans for taxpayers who suffered economic losses as a result of the severe storms, tornadoes, or flooding. Where to send 2011 tax return Definitions Qualified disaster recovery assistance distribution. Where to send 2011 tax return   A qualified disaster recovery assistance distribution is any distribution you received from an eligible retirement plan if all of the following apply. Where to send 2011 tax return The distribution was made on or after the applicable disaster date and before January 1, 2010. Where to send 2011 tax return Your main home was located in a Midwestern disaster area on the applicable disaster date. Where to send 2011 tax return You sustained an economic loss because of the severe storms, tornadoes, or flooding and your main home was in a Midwestern disaster area on the applicable disaster date. Where to send 2011 tax return Examples of an economic loss include, but are not limited to: Loss, damage to, or destruction of real or personal property from fire, flooding, looting, vandalism, theft, wind, or other cause; Loss related to displacement from your home; or Loss of livelihood due to temporary or permanent layoffs. Where to send 2011 tax return   If (1) through (3) above apply, you can generally designate any distribution (including periodic payments and required minimum distributions) from an eligible retirement plan as a qualified disaster recovery assistance distribution, regardless of whether the distribution was made on account of the severe storms, tornadoes, or flooding. Where to send 2011 tax return Qualified disaster recovery assistance distributions are permitted without regard to your need or the actual amount of your economic loss. Where to send 2011 tax return   The total of your qualified disaster recovery assistance distributions from all plans is limited to $100,000. Where to send 2011 tax return If you have distributions in excess of $100,000 from more than one type of plan, such as a 401(k) plan and an IRA, you can allocate the $100,000 limit among the plans any way you choose. Where to send 2011 tax return   A reduction or offset (on or after the applicable disaster date) of your account balance in an eligible retirement plan in order to repay a loan can also be designated as a qualified disaster recovery assistance distribution. Where to send 2011 tax return Eligible retirement plan. Where to send 2011 tax return   An eligible retirement plan can be any of the following. Where to send 2011 tax return A qualified pension, profit-sharing, or stock bonus plan (including a 401(k) plan). Where to send 2011 tax return A qualified annuity plan. Where to send 2011 tax return A tax-sheltered annuity contract. Where to send 2011 tax return A governmental section 457 deferred compensation plan. Where to send 2011 tax return A traditional, SEP, SIMPLE, or Roth IRA. Where to send 2011 tax return Main home. Where to send 2011 tax return   Generally, your main home is the home where you live most of the time. Where to send 2011 tax return A temporary absence due to special circumstances, such as illness, education, business, military service, evacuation, or vacation, will not change your main home. Where to send 2011 tax return Taxation of Qualified Disaster Recovery Assistance Distributions This benefit applies to the counties in both Tables 1 and 2. Where to send 2011 tax return Qualified disaster recovery assistance distributions are included in income in equal amounts over three years. Where to send 2011 tax return However, if you elect, you can include the entire distribution in your income in the year it was received. Where to send 2011 tax return Qualified disaster recovery assistance distributions are not subject to the additional 10% tax (or the additional 25% tax for certain distributions from SIMPLE IRAs) on early distributions from qualified retirement plans (including IRAs). Where to send 2011 tax return However, any distributions you receive in excess of the $100,000 qualified disaster recovery assistance distribution limit may be subject to the additional tax on early distributions. Where to send 2011 tax return For more information, see Form 8930. Where to send 2011 tax return Repayment of Qualified Disaster Recovery Assistance Distributions This benefit applies to the counties in both Tables 1 and 2. Where to send 2011 tax return If you choose, you generally can repay any portion of a qualified disaster recovery assistance distribution that is eligible for tax-free rollover treatment to an eligible retirement plan. Where to send 2011 tax return Also, you can repay a qualified disaster recovery assistance distribution made on account of a hardship from a retirement plan. Where to send 2011 tax return However, see Exceptions later for qualified disaster recovery assistance distributions you cannot repay. Where to send 2011 tax return You have three years from the day after the date you received the distribution to make a repayment. Where to send 2011 tax return Amounts that are repaid are treated as a qualified rollover and are not included in income. Where to send 2011 tax return Also, a repayment of a qualified disaster recovery assistance distribution to an IRA is not counted when figuring the one-rollover-per-year limitation. Where to send 2011 tax return See Form 8930 for more information on how to report repayments. Where to send 2011 tax return Exceptions. Where to send 2011 tax return   You cannot repay the following types of distributions. Where to send 2011 tax return Qualified disaster recovery assistance distributions received as a beneficiary (other than a surviving spouse). Where to send 2011 tax return Required minimum distributions. Where to send 2011 tax return Periodic payments (other than from an IRA) that are for: A period of 10 years or more, Your life or life expectancy, or The joint lives or joint life expectancies of you and your beneficiary. Where to send 2011 tax return Repayment of Qualified Distributions for the Purchase or Construction of a Main Home This benefit applies to the counties in both Tables 1 and 2. Where to send 2011 tax return If you received a qualified distribution to purchase or construct a main home in a Midwestern disaster area, you can repay part or all of that distribution on or after the applicable disaster date, but no later than March 3, 2009, to an eligible retirement plan. Where to send 2011 tax return For this purpose, an eligible retirement plan is any plan, annuity, or IRA to which a qualified rollover can be made. Where to send 2011 tax return To be a qualified distribution, the distribution must meet all of the following requirements. Where to send 2011 tax return The distribution is a hardship distribution from a 401(k) plan, a hardship distribution from a tax-sheltered annuity contract, or a qualified first-time homebuyer distribution from an IRA. Where to send 2011 tax return The distribution was received after the date that was 6 months before the day after the applicable disaster date. Where to send 2011 tax return The distribution was to be used to purchase or construct a main home in a Midwestern disaster area that was not purchased or constructed because of the severe storms, tornadoes, or flooding. Where to send 2011 tax return Amounts that are repaid before March 4, 2009, are treated as a qualified rollover and are not included in income. Where to send 2011 tax return Also, a repayment of a qualified distribution to an IRA is not counted when figuring the one-rollover-per-year limitation. Where to send 2011 tax return A qualified distribution not repaid before March 4, 2009, may be taxable for 2007 or 2008 and subject to the additional 10% tax (or the additional 25% tax for certain SIMPLE IRAs) on early distributions. Where to send 2011 tax return You must file Form 8930 if you received a qualified distribution that you repaid, in whole or in part, before March 4, 2009. Where to send 2011 tax return Loans From Qualified Plans This benefit applies to the counties in both Tables 1 and 2. Where to send 2011 tax return The following benefits are available to qualified individuals. Where to send 2011 tax return Increases to the limits for distributions treated as loans from employer plans. Where to send 2011 tax return A 1-year suspension for payments due on plan loans. Where to send 2011 tax return Qualified individual. Where to send 2011 tax return   You are a qualified individual if your main home was located in a Midwestern disaster area on the applicable disaster date and you had an economic loss because of the severe storms, tornadoes, or flooding. Where to send 2011 tax return Examples of an economic loss include, but are not limited to: Loss, damage to, or destruction of real or personal property from fire, flooding, looting, vandalism, theft, wind, or other cause; Loss related to displacement from your home; or Loss of livelihood due to temporary or permanent layoffs. Where to send 2011 tax return Limits on plan loans. Where to send 2011 tax return   The $50,000 limit for distributions treated as plan loans is increased to $100,000. Where to send 2011 tax return In addition, the limit based on 50% of your vested accrued benefit is increased to 100% of that benefit. Where to send 2011 tax return If your main home was located in a Midwestern disaster area, the higher limits apply only to loans received during the period beginning on October 3, 2008, and ending on December 31, 2009. Where to send 2011 tax return One-year suspension of loan payments. Where to send 2011 tax return   Payments on plan loans outstanding on or after the applicable disaster date, may be suspended for 1 year by the plan administrator. Where to send 2011 tax return To qualify for the suspension, the due date for any loan payment must occur during the period beginning on the applicable disaster date and ending on December 31, 2009. Where to send 2011 tax return Additional Tax Relief for Individuals Earned Income Credit and Child Tax Credit This benefit applies to the counties in both Tables 1 and 2. Where to send 2011 tax return You can elect to use your 2007 earned income to figure your earned income credit (EIC) and additional child tax credit for 2008 if: Your 2008 earned income is less than your 2007 earned income, and At least one of the following statements is true. Where to send 2011 tax return Your main home on the applicable disaster date was in a Midwestern disaster area as shown in Table 1. Where to send 2011 tax return Your main home on the applicable disaster date was in a Midwestern disaster area as shown in Table 2, and you were displaced from that home because of the severe storms, tornadoes, or flooding. Where to send 2011 tax return Earned income. Where to send 2011 tax return    For the purpose of this election, your earned income for both the EIC and the additional child tax credit is the amount of earned income used to figure your EIC, even if you did not take the EIC and even if that amount is different than your earned income for the additional child tax credit. Where to send 2011 tax return If you are claiming only the additional child tax credit, you must figure the amount of your earned income for EIC purposes to determine your eligibility to make the election and the amount of the credit. Where to send 2011 tax return Joint returns. Where to send 2011 tax return   If you file a joint return, you qualify to make this election even if only one spouse meets the requirements. Where to send 2011 tax return If you make the election, your 2007 earned income is the sum of your 2007 earned income and your spouse's 2007 earned income. Where to send 2011 tax return Making the election. Where to send 2011 tax return   If you make the election to use your 2007 earned income, the election applies for figuring both the EIC and the additional child tax credit. Where to send 2011 tax return However, you can make the election for the additional child tax credit even if you do not take the EIC. Where to send 2011 tax return   Electing to use your 2007 earned income can increase or decrease your EIC. Where to send 2011 tax return Take the following steps to decide whether to make the election. Where to send 2011 tax return Figure your 2008 EIC using your 2007 earned income. Where to send 2011 tax return Figure your 2008 additional child tax credit using your 2007 earned income for EIC purposes. Where to send 2011 tax return Add the results of (1) and (2). Where to send 2011 tax return Figure your 2008 EIC using your 2008 earned income. Where to send 2011 tax return Figure your 2008 additional child tax credit using your 2008 earned income for additional child tax credit purposes. Where to send 2011 tax return Add the results of (4) and (5). Where to send 2011 tax return Compare the results of (3) and (6). Where to send 2011 tax return If (3) is larger than (6), it is to your benefit to make the election. Where to send 2011 tax return If (3) is equal to or smaller than (6), making the election will not help you. Where to send 2011 tax return   If you elect to use your 2007 earned income and you are claiming the EIC, enter “PYEI” and the amount of your 2007 earned income on the dotted line next to line 64a of Form 1040, on the line next to line 40a of Form 1040A, or in the space to the left of line 8a of Form 1040EZ. Where to send 2011 tax return   If you elect to use your 2007 earned income and you are claiming the additional child tax credit, enter your 2007 earned income for EIC purposes (even if you did not claim the EIC) on Form 8812, Additional Child Tax Credit, line 4a, and check the box on that line. Where to send 2011 tax return Getting your 2007 tax return information. Where to send 2011 tax return   If you do not have your 2007 tax records, you can get the amount of earned income used to figure your 2007 EIC by calling 1-866-562-5227. Where to send 2011 tax return You can also get this information by visiting the IRS website at www. Where to send 2011 tax return irs. Where to send 2011 tax return gov. Where to send 2011 tax return   If you prefer to figure your 2007 earned income yourself, copies or transcripts of your filed and processed tax returns can help you reconstruct your tax records. Where to send 2011 tax return See Request for Copy or Transcript of Tax Return on page 11. Where to send 2011 tax return Additional Exemption for Housing Individuals Displaced by the Severe Storms, Tornadoes, or Flooding This benefit applies to the counties in both Tables 1 and 2. Where to send 2011 tax return You can claim an additional exemption amount of $500 for providing housing in your main home for each individual displaced by the severe storms, tornadoes, or flooding. Where to send 2011 tax return The additional exemption amount is claimed on Form 8914. Where to send 2011 tax return You can claim an additional exemption amount only one time for a specific individual. Where to send 2011 tax return If you claimed an additional exemption amount for an individual in 2008, you cannot claim that amount again for the same individual in 2009. Where to send 2011 tax return The maximum additional exemption amount you can claim for all displaced individuals is $2,000. Where to send 2011 tax return Any additional exemption amount you claimed for displaced individuals in 2008 will reduce the $2,000 maximum for 2009. Where to send 2011 tax return The $2,000 limit applies to a husband and wife, whether the husband and wife file joint returns or separate returns. Where to send 2011 tax return If married filing separately, the $2,000 can be divided in $500 increments between the spouses. Where to send 2011 tax return For example, if one spouse claims an additional exemption amount for one displaced individual, the other spouse, if otherwise eligible, can claim additional exemption amounts for three different displaced individuals. Where to send 2011 tax return If two or more taxpayers share the same main home, only one taxpayer in that main home can claim the additional exemption amount for a specific displaced individual. Where to send 2011 tax return In order for you to be considered to have provided housing, you must have a legal interest in the main home (that is, own or rent the home). Where to send 2011 tax return To qualify as a displaced individual, the individual: Must have had his or her main home in a Midwestern disaster area on the applicable disaster date, and he or she must have been displaced from that home. Where to send 2011 tax return If the individual's main home was located in a Midwestern disaster area as shown in Table 2, that home must have been damaged by the severe storms, tornadoes, or flooding or the individual must have been evacuated from that home because of the severe storms, tornadoes, or flooding, Must have been provided housing in your main home for a period of at least 60 consecutive days ending in the tax year in which the exemption is claimed, and Cannot be your spouse or dependent. Where to send 2011 tax return You cannot claim the additional exemption amount if you received rent (or any other amount) from any source for providing the housing. Where to send 2011 tax return You are permitted to receive payments or reimbursements that do not relate to normal housing costs, including the following. Where to send 2011 tax return Food, clothing, or personal items consumed or used by the displaced individual. Where to send 2011 tax return Reimbursement for the cost of any long distance telephone calls made by the displaced individual. Where to send 2011 tax return Reimbursement for the cost of gasoline for the displaced individual's use of your vehicle. Where to send 2011 tax return However, you cannot claim the additional exemption amount if you received any reimbursement for the extra costs of heat, electricity, or water used by the displaced individual. Where to send 2011 tax return Also, you must report on Form 8914 the displaced individual's social security number or individual taxpayer identification number to claim an additional exemption amount. Where to send 2011 tax return For more information, see Form 8914. Where to send 2011 tax return Education Credits This benefit applies only to the counties in Table 1. Where to send 2011 tax return The education credits have been expanded for students attending an eligible educational institution located in a Midwestern disaster area (Midwestern disaster area students) for any tax year beginning in 2008 or 2009. Where to send 2011 tax return The Hope credit for a Midwestern disaster area student is increased to 100% of the first $2,400 in qualified education expenses and 50% of the next $2,400 of qualified education expenses for a maximum credit of $3,600 per student. Where to send 2011 tax return The lifetime learning credit rate for a Midwestern disaster area student is increased from 20% to 40%. Where to send 2011 tax return The definition of qualified education expenses for a Midwestern disaster area student also has been expanded. Where to send 2011 tax return This expanded definition also applies to the tuition and fees deduction claimed on Form 8917. Where to send 2011 tax return In addition to tuition and fees required for the student's enrollment or attendance at an eligible educational institution, qualified education expenses for a Midwestern disaster area student include the following. Where to send 2011 tax return Books, supplies, and equipment required for enrollment or attendance at an eligible educational institution. Where to send 2011 tax return For a special needs student, expenses that are necessary for that person's enrollment or attendance at an eligible educational institution. Where to send 2011 tax return For a student who is at least a half-time student, the reasonable costs of room and board, but only to the extent that the costs are not more than the greater of the following two amounts. Where to send 2011 tax return The allowance for room and board, as determined by the eligible educational institution, that was included in the cost of attendance (for federal financial aid purposes) for a particular academic period and living arrangement of the student. Where to send 2011 tax return The actual amount charged if the student is residing in housing owned or operated by the eligible educational institution. Where to send 2011 tax return You will need to contact the eligible educational institution for qualified room and board costs. Where to send 2011 tax return For more information, see Form 8863. Where to send 2011 tax return See Form 8917 for the tuition and fees deduction. Where to send 2011 tax return Recapture of Federal Mortgage Subsidy This benefit applies only to the counties in Table 1. Where to send 2011 tax return Generally, if you financed your home under a federally subsidized program (loans from tax-exempt qualified mortgage bonds or loans with mortgage credit certificates), you may have to recapture all or part of the benefit you received from that program when you sell or otherwise dispose of your home. Where to send 2011 tax return However, you do not have to recapture any benefit if your mortgage loan was a qualified home improvement loan of not more than $15,000. Where to send 2011 tax return This amount is increased to $150,000 if the loan was provided before 2011 and was used to alter, repair, or improve an existing owner-occupied residence in a Midwestern disaster area as shown in Table 1. Where to send 2011 tax return Exclusion of Certain Cancellations of Indebtedness by Reason of the Severe Storms, Tornadoes, or Flooding This benefit applies to the counties in both Tables 1 and 2. Where to send 2011 tax return Generally, discharges of nonbusiness debts (such as mortgages) made on or after the applicable disaster date and before January 1, 2010, are excluded from income for individuals whose main home was in a Midwestern disaster area on the applicable disaster date. Where to send 2011 tax return If the individual's main home was located in a Midwestern disaster area as shown in Table 2, the individual also must have had an economic loss because of the severe storms, tornadoes, or flooding. Where to send 2011 tax return Examples of an economic loss include, but are not limited to: Loss, damage to, or destruction of real or personal property from fire, flooding, looting, vandalism, theft, wind, or other cause; Loss related to displacement from your home; or Loss of livelihood due to temporary or permanent layoffs. Where to send 2011 tax return This relief does not apply to any debt secured by real property located outside a Midwestern disaster area. Where to send 2011 tax return You may also have to reduce certain tax attributes by the amount excluded. Where to send 2011 tax return For more information, see Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment). Where to send 2011 tax return Tax Relief for Temporary Relocation This benefit applies only to the counties in Table 1. Where to send 2011 tax return The IRS can adjust the internal revenue laws to ensure that taxpayers do not lose a deduction or credit or experience a change of filing status in 2008 or 2009 as a result of a temporary relocation caused by the severe storms, tornadoes, or flooding. Where to send 2011 tax return However, any such adjustment must ensure that an individual is not taken into account by more than one taxpayer for the same tax benefit. Where to send 2011 tax return The IRS has exercised this authority as follows. Where to send 2011 tax return In determining whether you furnished over one-half of the cost of maintaining a household, you can exclude from total household costs any assistance received from the government or charitable organizations because you were temporarily relocated as a result of the severe storms, tornadoes, or flooding. Where to send 2011 tax return In determining whether you provided more than one-half of an individual's support, you can disregard any assistance received from the government or charitable organizations because you were temporarily relocated as a result of the severe storms, tornadoes, or flooding. Where to send 2011 tax return You can treat as a student an individual who enrolled in school before the applicable disaster date, and who is unable to attend classes because of the severe storms, tornadoes, or flooding, for each month of the enrollment period that individual is prevented by the severe storms, tornadoes, or flooding from attending school as planned. Where to send 2011 tax return Additional Tax Relief for Businesses Employee Retention Credit This benefit applies only to the counties in Table 1. Where to send 2011 tax return An eligible employer who conducted an active trade or business in a Midwestern disaster area can claim the employee retention credit. Where to send 2011 tax return The credit is 40% of qualified wages for each eligible employee (up to a maximum of $6,000 in qualified wages per employee). Where to send 2011 tax return Generally, you must reduce your deduction for salaries and wages by the amount of this credit (before the tax liability limit). Where to send 2011 tax return Use Form 5884-A to claim the credit. Where to send 2011 tax return Employers affected by the severe storms, tornadoes, or flooding. Where to send 2011 tax return   The following definitions apply to employers affected by the severe storms, tornadoes, or flooding. Where to send 2011 tax return Eligible employer. Where to send 2011 tax return   For this purpose, an eligible employer is any employer who meets all of the following. Where to send 2011 tax return Employed an average of not more than 200 employees on business days during the tax year before the applicable disaster date. Where to send 2011 tax return Conducted an active trade or business on the applicable disaster date in a Midwestern disaster area. Where to send 2011 tax return Whose trade or business was inoperable on any day after the applicable disaster date and before January 1, 2009, because of the damage caused by the severe storms, tornadoes, or flooding. Where to send 2011 tax return Eligible employee. Where to send 2011 tax return   For this purpose, an eligible employee is an employee whose principal place of employment on the applicable disaster date with such eligible employer was in a Midwestern disaster area. Where to send 2011 tax return An employee is not an eligible employee for purposes of the severe storms, tornadoes, or flooding if the employee is treated as an eligible employee for the work opportunity credit. Where to send 2011 tax return Qualified wages. Where to send 2011 tax return   Qualified wages are wages (up to $6,000 per employee) you paid or incurred before January 1, 2009, for an eligible employee beginning on the date your trade or business first became inoperable at the employee's principal place of employment immediately before the applicable disaster, and ending on the date your trade or business resumed significant operations at that place. Where to send 2011 tax return In addition, the wages must have been paid or incurred after the applicable disaster date. Where to send 2011 tax return    This includes wages paid even if the employee performed no services, performed services at a place of employment other than the principal place of employment, or performed services at the principal place of employment before significant operations resumed. Where to send 2011 tax return    Wages qualifying for the credit generally have the same meaning as wages subject to the Federal Unemployment Tax Act (FUTA). Where to send 2011 tax return Qualified wages also include amounts you paid for medical or hospitalization expenses in connection with sickness or accident disability. Where to send 2011 tax return Qualified wages for any employee must be reduced by the amount of any work supplementation payment you received under the Social Security Act. Where to send 2011 tax return   For agricultural employees, if the work performed by any employee during more than half of any pay period qualified under FUTA as agricultural labor, that employee's wages subject to social security and Medicare taxes are qualified wages. Where to send 2011 tax return For a special rule that applies to railroad employees, see section 51(h)(1)(B). Where to send 2011 tax return   Qualified wages do not include the following. Where to send 2011 tax return Wages paid to your dependent or a related individual. Where to send 2011 tax return See section 51(i)(1). Where to send 2011 tax return Wages paid to any employee during the period for which you received payment for the employee from a federally funded on-the-job training program. Where to send 2011 tax return Wages for services of replacement workers during a strike or lockout. Where to send 2011 tax return   For more information, see Form 5884-A. Where to send 2011 tax return Employer Housing Credit and Exclusion This benefit applies only to the counties in Table 1. Where to send 2011 tax return An employer who conducted an active trade or business in a Midwestern disaster area can claim the employer housing credit. Where to send 2011 tax return The credit is equal to 30% of the value (up to $600 per month per employee) of in-kind lodging furnished to a qualified employee (and the employee's spouse or dependents) from November 1, 2008, through May 1, 2009. Where to send 2011 tax return The value of the lodging is excluded from the income of the qualified employee but is treated as wages for purposes of taxes imposed under the Federal Insurance Contributions Act (FICA) and the Federal Unemployment Tax Act (FUTA). Where to send 2011 tax return Generally, you must reduce your deduction for salaries and wages by the amount of this credit (before the tax liability limit). Where to send 2011 tax return The employer must use Form 5884-A to claim the credit. Where to send 2011 tax return A qualified employee is an individual who had a main home in a Midwestern disaster area on the applicable disaster date, and who performs substantially all employment services in a Midwestern disaster area for the employer furnishing the lodging. Where to send 2011 tax return The employee cannot be your dependent or a related individual. Where to send 2011 tax return See section 51(i)(1). Where to send 2011 tax return For more information, see Form 5884-A. Where to send 2011 tax return Demolition and Clean-up Costs This benefit applies only to the counties in Table 1. Where to send 2011 tax return You can elect to deduct 50% of any qualified disaster recovery assistance clean-up costs for the tax year in which the costs are paid or incurred, instead of capitalizing them. Where to send 2011 tax return Qualified disaster recovery assistance clean-up costs are any amounts paid or incurred on or after the applicable disaster date, and before January 1, 2011, for the removal of debris from, or the demolition of structures on, real property located in a Midwestern disaster area that is: Held by you for use in a trade or business or for the production of income, or Inventory or other property held primarily for sale to customers in the ordinary course of your trade or business. Where to send 2011 tax return Qualified disaster recovery assistance clean-up costs are limited to amounts necessary due to damage attributable to the severe storms, tornadoes, or flooding in the Midwestern disaster areas. Where to send 2011 tax return Increase in Rehabilitation Tax Credit This benefit applies only to the counties in Table 1. Where to send 2011 tax return The rehabilitation credit is increased for qualified rehabilitation expenditures paid or incurred on or after the applicable disaster date, and before January 1, 2012, on buildings located in a Midwestern disaster area as follows. Where to send 2011 tax return For pre-1936 buildings (other than certified historic structures), the credit percentage is increased from 10% to 13%. Where to send 2011 tax return For certified historic structures, the credit percentage is increased from 20% to 26%. Where to send 2011 tax return For more information, see Form 3468, Investment Credit. Where to send 2011 tax return Request for Copy or Transcript of Tax Return Request for copy of tax return. Where to send 2011 tax return   You can use Form 4506 to order a copy of your tax return. Where to send 2011 tax return Generally, there is a $57 fee for requesting each copy of a tax return. Where to send 2011 tax return If your main home, principal place of business, or tax records are located in a Midwestern disaster area, the fee will be waived if “Midwestern Disaster Area” is written in red across the top of the form when filed. Where to send 2011 tax return Request for transcript of tax return. Where to send 2011 tax return   You can use Form 4506-T to order a free transcript of your tax return. Where to send 2011 tax return A transcript provides most of the line entries from a tax return and usually contains the information that a third party requires. Where to send 2011 tax return You can also call 1-800-829-1040 to order a transcript. Where to send 2011 tax return How To Get Tax Help Special IRS assistance. Where to send 2011 tax return   The IRS is providing special help for those affected by the severe storms, tornadoes, or flooding, as well as survivors and personal representatives of the victims. Where to send 2011 tax return We have set up a special toll-free number for people who may have trouble filing or paying their taxes because they were affected by recent federally declared disasters, or who have other tax issues related to the severe storms, tornadoes, or flooding. Where to send 2011 tax return Call 1-866-562-5227 Monday through FridayIn English–7 a. Where to send 2011 tax return m. Where to send 2011 tax return to 10 p. Where to send 2011 tax return m. Where to send 2011 tax return local timeIn Spanish–8 a. Where to send 2011 tax return m. Where to send 2011 tax return to 9:30 p. Where to send 2011 tax return m. Where to send 2011 tax return local time   The IRS website at www. Where to send 2011 tax return irs. Where to send 2011 tax return gov has notices and other tax relief information. Where to send 2011 tax return Check it periodically for any new guidance. Where to send 2011 tax return You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS in several ways. Where to send 2011 tax return By selecting the method that is best for you, you will have quick and easy access to tax help. Where to send 2011 tax return Contacting your Taxpayer Advocate. Where to send 2011 tax return   The Taxpayer Advocate Service (TAS) is an independent organization within the IRS whose employees assist taxpayers who are experiencing economic harm, who are seeking help in resolving tax problems that have not been resolved through normal channels, or who believe that an IRS system or procedure is not working as it should. Where to send 2011 tax return Here are seven things every taxpayer should know about TAS: TAS is your voice at the IRS. Where to send 2011 tax return Our service is free, confidential, and tailored to meet your needs. Where to send 2011 tax return You may be eligible for TAS help if you have tried to resolve your tax problem through normal IRS channels and have gotten nowhere, or you believe an IRS procedure just isn't working as it should. Where to send 2011 tax return TAS helps taxpayers whose problems are causing financial difficulty or significant cost, including the cost of professional representation. Where to send 2011 tax return This includes businesses as well as individuals. Where to send 2011 tax return TAS employees know the IRS and how to navigate it. Where to send 2011 tax return We will listen to your problem, help you understand what needs to be done to resolve it, and stay with you every step of the way until your problem is resolved. Where to send 2011 tax return TAS has at least one local taxpayer advocate in every state, the District of Columbia, and Puerto Rico. Where to send 2011 tax return You can call your local advocate, whose number is in your phone book, in Pub. Where to send 2011 tax return 1546, Taxpayer Advocate Service—Your Voice at the IRS, and on our website at www. Where to send 2011 tax return irs. Where to send 2011 tax return gov/advocate. Where to send 2011 tax return You can also call our toll-free line at 1-877-777-4778 or TTY/TDD 1-800-829-4059. Where to send 2011 tax return You can learn about your rights and responsibilities as a taxpayer by visiting our online tax toolkit at www. Where to send 2011 tax return taxtoolkit. Where to send 2011 tax return irs. Where to send 2011 tax return gov. Where to send 2011 tax return Low Income Taxpayer Clinics (LITCs). Where to send 2011 tax return   The Low Income Taxpayer Clinic program serves individuals who have a problem with the IRS and whose income is below a certain level. Where to send 2011 tax return LITCs are independent from the IRS. Where to send 2011 tax return Most LITCs can provide representation before the IRS or in court on audits, tax collection disputes, and other issues for free or a small fee. Where to send 2011 tax return If an individual's native language is not English, some clinics can provide multilingual information about taxpayer rights and responsibilities. Where to send 2011 tax return For more information, see Publication 4134, Low Income Taxpayer Clinic List. Where to send 2011 tax return This publication is available at www. Where to send 2011 tax return irs. Where to send 2011 tax return gov, by calling 1-800-TAX-FORM (1-800-829-3676), or at your local IRS office. Where to send 2011 tax return Free tax services. Where to send 2011 tax return   To find out what services are available, get Publication 910, IRS Guide to Free Tax Services. Where to send 2011 tax return It contains lists of free tax information sources, including publications, services, and free tax education and assistance programs. Where to send 2011 tax return It also has an index of over 100 TeleTax topics (recorded tax information) you can listen to on your telephone. Where to send 2011 tax return   Accessible versions of IRS published products are available on request in a variety of alternative formats for people with disabilities. Where to send 2011 tax return Free help with your return. Where to send 2011 tax return   Free help in preparing your return is available nationwide from IRS-trained volunteers. Where to send 2011 tax return The Volunteer Income Tax Assistance (VITA) program is designed to help low-income taxpayers and the Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. Where to send 2011 tax return Many VITA sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Where to send 2011 tax return To find the nearest VITA or TCE site, call 1-800-829-1040. Where to send 2011 tax return   As part of the TCE program, AARP offers the Tax-Aide counseling program. Where to send 2011 tax return To find the nearest AARP Tax-Aide site, call 1-888-227-7669 or visit AARP's website atwww. Where to send 2011 tax return aarp. Where to send 2011 tax return org/money/taxaide. Where to send 2011 tax return   For more information on these programs, go to www. Where to send 2011 tax return irs. Where to send 2011 tax return gov and enter keyword “VITA” in the upper right-hand corner. Where to send 2011 tax return Internet. Where to send 2011 tax return You can access the IRS website at www. Where to send 2011 tax return irs. Where to send 2011 tax return gov 24 hours a day, 7 days a week to: E-file your return. Where to send 2011 tax return Find out about commercial tax preparation and e-file services available free to eligible taxpayers. Where to send 2011 tax return Check the status of your 2009 refund. Where to send 2011 tax return Go to www. Where to send 2011 tax return irs. Where to send 2011 tax return gov and click on Where's My Refund. Where to send 2011 tax return Wait at least 72 hours after the IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after mailing a paper return. Where to send 2011 tax return If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Where to send 2011 tax return Have your 2009 tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Where to send 2011 tax return Download forms, instructions, and publications. Where to send 2011 tax return Order IRS products online. Where to send 2011 tax return Research your tax questions online. Where to send 2011 tax return Search publications online by topic or keyword. Where to send 2011 tax return Use the online Internal Revenue Code, Regulations, or other official guidance. Where to send 2011 tax return View Internal Revenue Bulletins (IRBs) published in the last few years. Where to send 2011 tax return Figure your withholding allowances using the withholding calculator online at www. Where to send 2011 tax return irs. Where to send 2011 tax return gov/individuals. Where to send 2011 tax return Determine if Form 6251 must be filed by using our Alternative Minimum Tax (AMT) Assistant. Where to send 2011 tax return Sign up to receive local and national tax news by email. Where to send 2011 tax return Get information on starting and operating a small business. Where to send 2011 tax return Phone. Where to send 2011 tax return Many services are available by phone. Where to send 2011 tax return Ordering forms, instructions, and publications. Where to send 2011 tax return Call 1-800-TAX FORM (1-800-829-3676) to order current-year forms, instructions, and publications, and prior-year forms and instructions. Where to send 2011 tax return You should receive your order within 10 days. Where to send 2011 tax return Asking tax questions. Where to send 2011 tax return Call the IRS with your tax questions at 1-800-829-1040. Where to send 2011 tax return Solving problems. Where to send 2011 tax return You can get face-to-face help solving tax problems every business day in IRS Taxpayer Assistance Centers. Where to send 2011 tax return An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. Where to send 2011 tax return Call your local Taxpayer Assistance Center for an appointment. Where to send 2011 tax return To find the number, go to www. Where to send 2011 tax return irs. Where to send 2011 tax return gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Where to send 2011 tax return TTY/TDD equipment. Where to send 2011 tax return If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and publications. Where to send 2011 tax return TeleTax topics. Where to send 2011 tax return Call 1-800-829-4477 to listen to pre-recorded messages covering various tax topics. Where to send 2011 tax return Refund information. Where to send 2011 tax return To check the status of your 2009 refund, call 1-800-829-1954 during business hours or 1-800-829-4477 (automated refund information 24 hours a day, 7 days a week). Where to send 2011 tax return Wait at least 72 hours after the IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after mailing a paper return. Where to send 2011 tax return If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Where to send 2011 tax return Have your 2009 tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Where to send 2011 tax return Refunds are sent out weekly on Fridays. Where to send 2011 tax return If you check the status of your refund and are not given the date it will be issued, please wait until the next week before checking back. Where to send 2011 tax return Other refund information. Where to send 2011 tax return To check the status of a prior year refund or amended return refund, call 1-800-829-1954. Where to send 2011 tax return Evaluating the quality of our telephone services. Where to send 2011 tax return To ensure IRS representatives give accurate, courteous, and professional answers, we use several methods to evaluate the quality of our telephone services. Where to send 2011 tax return One method is for a second IRS representative to listen in on or record random telephone calls. Where to send 2011 tax return Another is to ask some callers to complete a short survey at the end of the call. Where to send 2011 tax return Walk-in. Where to send 2011 tax return Many products and services are available on a walk-in basis. Where to send 2011 tax return Products. Where to send 2011 tax return You can walk in to many post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Where to send 2011 tax return Some IRS offices, libraries, grocery stores, copy centers, city and county government offices, credit unions, and office supply stores have a collection of products available to print from a CD or photocopy from reproducible proofs. Where to send 2011 tax return Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes. Where to send 2011 tax return Services. Where to send 2011 tax return You can walk in to your local Taxpayer Assistance Center every business day for personal, face-to-face tax help. Where to send 2011 tax return An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. Where to send 2011 tax return If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you are more comfortable talking with someone in person, visit your local Taxpayer Assistance Center where you can spread out your records and talk with an IRS representative face-to-face. Where to send 2011 tax return No appointment is necessary—just walk in. Where to send 2011 tax return If you prefer, you can call your local Center and leave a message requesting an appointment to resolve a tax account issue. Where to send 2011 tax return A representative will call you back within 2 business days to schedule an in-person appointment at your convenience. Where to send 2011 tax return If you have an ongoing, complex tax account problem or a special need, such as a disability, an appointment can be requested. Where to send 2011 tax return All other issues will be handled without an appointment. Where to send 2011 tax return To find the number of your local office, go to www. Where to send 2011 tax return irs. Where to send 2011 tax return gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Where to send 2011 tax return Mail. Where to send 2011 tax return You can send your order for forms, instructions, and publications to the address below. Where to send 2011 tax return You should receive a response within 10 days after your request is received. Where to send 2011 tax return Internal Revenue Service1201 N. Where to send 2011 tax return Mitsubishi MotorwayBloomington, IL 61705-6613 DVD for tax products. Where to send 2011 tax return You can order Publication 1796, IRS Tax Products DVD, and obtain: Current-year forms, instructions, and publications. Where to send 2011 tax return Prior-year forms, instructions, and publications. Where to send 2011 tax return Tax Map: an electronic research tool and finding aid. Where to send 2011 tax return Tax law frequently asked questions. Where to send 2011 tax return Tax Topics from the IRS telephone response system. Where to send 2011 tax return Internal Revenue Code—Title 26 of the U. Where to send 2011 tax return S. Where to send 2011 tax return Code. Where to send 2011 tax return Fill-in, print, and save features for most tax forms. Where to send 2011 tax return Internal Revenue Bulletins. Where to send 2011 tax return Toll-free and email technical support. Where to send 2011 tax return Two releases during the year. Where to send 2011 tax return – The first release will ship the beginning of January 2010. Where to send 2011 tax return – The final release will ship the beginning of March 2010. Where to send 2011 tax return Purchase the DVD from National Technical Information Service (NTIS) at www. Where to send 2011 tax return irs. Where to send 2011 tax return gov/cdorders for $30 (no handling fee) or call 1-877-233-6767 toll free to buy the DVD for $30 (plus a $6 handling fee). Where to send 2011 tax return Prev  Up  Next   Home   More Online Publications