A

Accelerated Cost Recovery System (ACRS):, MACRS

(see also Modified Accelerated Cost Recovery System (MACRS))

Effective date, Depreciation Methods

Accounting methods:

Accrual method, When to report.

Cash method, When to report.

Change of method, Changing your accounting method.

Constructive receipt of income, When to report.

Accrual method taxpayers, When to report.

ACRS (Accelerated Cost Recovery System):

Effective date, Depreciation Methods

Active participation, Active participation.

Activities not for profit, Not Rented for Profit

Additions to property:, Additions or improvements to property.

(see also Improvements)

Basis, Increases to basis., Additions or improvements.

MACRS recovery period, Additions or improvements to property.

Adjusted basis:

MACRS depreciation, Adjusted Basis

Adjusted gross income (AGI)

Modified (see Modified adjusted gross income (MAGI))

Advance rent, Advance rent.

Advance rent:

Security deposits, Security deposits.

Advertising, Other Expenses

Allocation of expenses:

Change of property to rental use, Property Changed to Rental Use

How to divide expenses, How To Divide Expenses

Part of property rented, Renting Part of Property, How to divide expenses.

Personal use of rental property, Personal use of rental property., Personal Use of Dwelling Unit (Including Vacation Home)

Alternative Depreciation System (ADS):

Election of, Election.

MACRS, MACRS, Table 4-D.

Alternative minimum tax (AMT):

Accelerated depreciation methods, Alternative minimum tax.

Amended returns, Filing an amended return.

Apartments:

Basement apartments, Examples

Dwelling units, Dwelling unit.

Appraisal fees, Settlement fees and other costs.

Assessments for maintenance, Assessments for local improvements.

Assessments, local (see Local assessments)

Assistance (see Tax help)

Assumption of mortgage, Assumption of a mortgage.

At-risk rules, Limits on Rental Losses

Attorneys' fees, Settlement fees and other costs., Increases to basis.

Automobiles:

MACRS recovery periods, Recovery Periods Under GDS

B

Basis:

Adjusted basis, Adjusted Basis

Assessments for local improvements, Assessments for local improvements.

Basis other than cost, Basis Other Than Cost

Cost basis, Cost Basis

Decreases to, Decreases to basis.

Deductions:

Capitalization of costs vs., Deducting vs. capitalizing costs.

Not greater than basis, No deduction greater than basis.

Fair market value, Fair market value.

Increases to, Increases to basis.

MACRS depreciable basis, Depreciable Basis

Property changed to rental use, Basis of Property Changed to Rental Use

C

Capital expenditures:

Deductions vs., effect on basis, Deducting vs. capitalizing costs.

Improvements, Improvements.

Local benefit taxes, Local benefit taxes.

Mortgages, payments to obtain, Expenses paid to obtain a mortgage.

Cars:

MACRS recovery periods, Recovery Periods Under GDS

Cash method taxpayers, When to report.

Casualty losses, Casualties and Thefts

Change of accounting method, Changing your accounting method.

Charitable contributions:

Use of property, Donation of use of property.

Cleaning and maintenance, Other Expenses

Closing costs, Settlement fees and other costs.

Comments on publication, Comments and suggestions.

Commissions, Other Expenses

Computers:

MACRS recovery periods, Recovery Periods Under GDS

Condominiums, Condominiums and Cooperatives, Dwelling unit.

Constructive receipt of income, When to report.

Cooperative housing, Cooperative, Dwelling unit., Cooperative apartments.

Cost basis, Cost Basis

Credit reports, Settlement fees and other costs.

Credits:

Residential energy credit before 1986, Decreases to basis.

D

Days of personal use, Dwelling Unit Used as Home, Figuring Days of Personal Use

Days used for repairs and maintenance, Days Used for Repairs and Maintenance

Deductions

Depreciation (see Depreciation)

Passive activity losses (see Passive activity)

Deductions:, Rental Expenses

(see also Rental expenses)

Capitalizing costs vs., effect on basis, Deducting vs. capitalizing costs.

How to figure rental deductions, How To Figure Rental Income and Deductions

Limitations on, Limit on deductions., Limits on Rental Losses

Property not used as home, Property Not Used as a Home

Property used as home, Property Used as a Home

Depreciation, Depreciation, Election.

Alternative Depreciation System (ADS) (see Modified Accelerated Cost Recovery System (MACRS))

Basis (see Basis)

MACRS (see Modified Accelerated Cost Recovery System (MACRS))

Depreciation:

Change of accounting method, Changing your accounting method.

Change of property to rental use, Property Changed to Rental Use, Personal home changed to rental use.

Claiming correct amount of, Claiming the correct amount of depreciation.

Declining balance method, Depreciation Methods, Declining Balance Method

Duration of property expected to last more than one year, What Property Can be Depreciated

Eligible property, What Property Can be Depreciated

Excepted property, What Property Can be Depreciated

First-year expensing, Section 179 deduction.

Methods, Depreciation Methods, MACRS Depreciation Under GDS

Ownership of property, What Property Can be Depreciated, Property you own.

Placement in service, Property Changed to Rental Use

Rental expense, Depreciation.

Rented property, Rented property.

Section 179 deduction, Section 179 deduction.

Special depreciation allowances, Special Depreciation Allowance

Straight line method, Depreciation Methods, Straight Line Method

Useful life, What Property Can be Depreciated, Property having a determinable useful life.

Vacant rental property, Vacant rental property.

Discount, bonds and notes issued at (see Original issue discount (OID))

Dividing of expenses (see Allocation of expenses)

Dwelling units:

Definition, Dwelling unit.

Fair rental price, Fair rental price.

Personal use of, Personal Use of Dwelling Unit (Including Vacation Home), Dwelling Unit Used as Home, Figuring Days of Personal Use

E

Easements, Decreases to basis.

Equipment rental expense, Rental of equipment.

Expenses (see Rental expenses)

F

Fair market value (FMV), Fair market value.

Fair rental price, Fair rental price., How To Divide Expenses

Fees

Points (see Points)

Fees:

Loan origination fees, Points., Settlement fees and other costs.

Settlement fees and other costs, Settlement fees and other costs.

Tax return preparation fees, Other Expenses, Tax return preparation.

First-year expensing, Section 179 deduction.

Form 1040, Schedule E, Schedule E (Form 1040)

Form 1040:

Not rented for profit income, Where to report.

Part of property rented, Renting Part of Property

Rental income and expenses, How To Report Rental Income and Expenses

Form 1098:

Mortgage interest, Form 1098.

Form 4684:

Casualties and thefts, How to report.

Form 4797:

Sales of business property, How to report.

Form 8582:

Passive activity losses, Limits on passive activity deductions and credits., Form 8582 not required.

Free tax services, How To Get Tax Help

G

Gains and losses:

At-risk rules, At-Risk Rules

Casualty and theft losses, Casualties and Thefts

Limits on rental losses, Limits on Rental Losses

Passive activity losses, Passive Activity Limits

Rental real estate activities, Losses From Rental Real Estate Activities

Sale of rental property, Sale of rental property., How to report.

General depreciation system (GDS) (see Modified Accelerated Cost Recovery System (MACRS))

H

Help (see Tax help)

Home

Use as rental property (see Use of home)

Home:

Main home, Main home.

I

Improvements, , Improvements.

Improvements:,

(see also Repairs)

Assessments for local improvements, Assessments for local improvements.

Basis, Increases to basis., Additions or improvements.

Depreciation of rented property, Rented property.

MACRS recovery period, Additions or improvements to property.

Indian reservation property, Qualified Indian reservation property.

Insurance, Other Expenses

Insurance:

Casualty or theft loss payments, Decreases to basis.

Change of property to rental use, Property Changed to Rental Use

Fire insurance premiums, cost basis, Settlement fees and other costs.

Part of property rented, Renting Part of Property

Premiums paid in advance, Insurance premiums paid in advance.

Title insurance, cost basis, Settlement fees and other costs.

Interest payments:, Interest expense.

(see also Mortgages)

Loan origination fees, Points.

Rental expenses, Other Expenses

L

Land:

Cost basis, Land and buildings.

Depreciation, Land.

Leases:

Cancellation payments, Payment for canceling a lease.

Equipment leasing, Rental of equipment.

Limits:

Passive activity losses and credits, Exception., Passive Activity Limits

Rental expense deductions, Limit on deductions.

Rental losses, Limits on Rental Losses

Loans:

Assumption fees, Settlement fees and other costs.

Charges connected with getting or refinancing, cost basis, Settlement fees and other costs.

Low or no interest, Loans with low or no interest.

Origination fees, Points.

Local assessments, Assessments for local improvements.

Losses (see Gains and losses)

M

Material participation, Exception for Real Estate Professionals

Minimal rental use exception, Exception for minimal rental use.

Missing children, photographs of, Reminder

Modified Accelerated Cost Recovery System (MACRS), MACRS, Election.

Modified Accelerated Cost Recovery System (MACRS):

Additions or improvements to property, Additions or improvements to property.

Adjusted basis, Adjusted Basis

Alternative Depreciation System (ADS), MACRS, MACRS Depreciation Under ADS

Basis other than cost, Basis Other Than Cost

Conventions, Conventions

Cost basis, Cost Basis

Declining balance method, Declining Balance Method

Depreciable basis, Depreciable Basis

Determination of deduction, MACRS

Effective date, Depreciation Methods

Excluded property, Excluded property.

General Depreciation System (GDS), MACRS, Recovery Periods Under GDS, MACRS Depreciation Under GDS

Nonresidential rental property, Recovery Periods Under GDS

Personal home changed to rental use, Personal home changed to rental use.

Property used in rental activities (Table 3), Table 3. MACRS Recovery Periods for Property Used in Rental Activities

Recovery periods, Table 3. MACRS Recovery Periods for Property Used in Rental Activities, 5-, 7-, or 15-year property.

Residential rental property, Recovery Periods Under GDS, Residential rental property.

Special depreciation allowances, Special Depreciation Allowance

Straight line method, Straight Line Method

Modified adjusted gross income (MAGI), Modified adjusted gross income.

More information (see Tax help)

Mortgages, Expenses paid to obtain a mortgage.

Mortgages:

Assumption of, cost basis, Assumption of a mortgage.

Change of property to rental use, Property Changed to Rental Use

End of, OID, Loan or mortgage ends.

Interest, Interest expense., Property Changed to Rental Use, Renting Part of Property

Mortgage insurance premiums, Settlement fees and other costs.

Part of property rented, Renting Part of Property

N

Nonresidential real property, Recovery Periods Under GDS

Not-for-profit activities, Not Rented for Profit

O

Original issue discount (OID), Points., Loan or mortgage ends.

P

Part interest:

Expenses, Part interest.

Income, Part interest.

Passive activity, Limits on Rental Losses

Passive activity:

Maximum special allowance, Maximum special allowance.

Personal property:

Rental income from, Property or services.

Personal use of rental property, Personal Use of Dwelling Unit (Including Vacation Home), Days Used for Repairs and Maintenance

Personal use of rental property:, Property Changed to Rental Use

(see also Property changed to rental use)

Placed-in-service date, Placed-in-Service Date

Points, Other Expenses, Points., Settlement fees and other costs.

Pre-rental expenses, Pre-rental expenses.

Principal residence (see Home)

Profit, property not rented for, Not Rented for Profit

Property changed to rental use, Property Changed to Rental Use

Property changed to rental use:

Basis, Basis of Property Changed to Rental Use

MACRS depreciation, Personal home changed to rental use.

Property not used as home:

Rental income and deductions, Property Not Used as a Home

Property used as home (see Use of home)

Publications (see Tax help)

R

Real estate professionals, Real estate professional.

Real estate professionals:

Passive activity rules, exception to, Exception for Real Estate Professionals

Real estate taxes, Real estate taxes.

Real property trades or businesses, Real property trades or businesses.

Recordkeeping requirements:

Travel and transportation expenses, Travel expenses., Local transportation expenses.

Recovery periods, Recovery Periods Under GDS

Rent, Settlement fees and other costs.

Rent:

Advance rent, Advance rent.

Fair price, Fair rental price.

Rental expenses, Rental Expenses

Rental expenses:

Advertising, Other Expenses

Allocation between rental and personal uses, How To Divide Expenses

Change of property to rental use, Property Changed to Rental Use

Cleaning and maintenance, Other Expenses

Commissions, Other Expenses

Deductions, how to figure, How To Figure Rental Income and Deductions

Depreciation, Depreciation.

Dwelling unit used as home, Dwelling Unit Used as Home

Equipment rental, Rental of equipment.

Home, property also used as, Rental of property also used as a home., Property Used as a Home

Improvements, , Improvements.

Insurance, Other Expenses, Insurance premiums paid in advance.

Interest payments, Other Expenses, Interest expense.

Local transportation expenses, Other Expenses, Local transportation expenses.

Not used as home, Property Not Used as a Home

Part of property rented, Renting Part of Property

Points, Other Expenses, Points.

Pre-rental expenses, Pre-rental expenses.

Rental payments, Other Expenses

Repairs, Repairs and Improvements, Repairs.

Sale of property, Expenses for rental property sold.

Tax return preparation fees, Other Expenses, Tax return preparation.

Taxes, Other Expenses

Tenant, paid by, Expenses paid by tenant.

Travel expenses, Other Expenses, Travel expenses.

Utilities, Other Expenses

Vacant rental property, Vacant rental property.

Rental income:

Advance rent, Advance rent.

Cancellation of lease payments, Payment for canceling a lease.

Dwelling unit used as home, Dwelling Unit Used as Home

Figuring, How To Figure Rental Income and Deductions

Lease with option to buy, Lease with option to buy.

Minimal rental use exception, Exception for minimal rental use.

Not rented for profit, Not Rented for Profit

Not used as home, Property Not Used as a Home

Part interest, Part interest.

Property received from tenant, Property or services.

Reporting, When to report., How To Report Rental Income and Expenses

Security deposit, Security deposits.

Services received from tenant, Property or services.

Used as home, Rental of property also used as a home., Property Used as a Home

Rental losses (see Gains and losses) (see Passive activity)

Repairs, Repairs and Improvements, Repairs.

Repairs:, Repairs and Improvements

(see also Improvements)

Assessments for maintenance, Assessments for local improvements.

Personal use of rental property exception for days used for repairs and maintenance, Days Used for Repairs and Maintenance

S

Sale of property:

Expenses, Expenses for rental property sold.

Gain or loss, Sale of rental property., How to report.

Main home, Sale of main home used as rental property.

Section 179 deductions, Section 179 deduction.

Security deposits, Security deposits.

Settlement fees, Settlement fees and other costs.

Shared equity financing agreements, Shared equity financing agreement.

Special depreciation allowances, Special Depreciation Allowance

Spouse:

Material participation, Participating spouse.

Standard mileage rates, Local transportation expenses.

Suggestions for publication, Comments and suggestions.

Surveys, Settlement fees and other costs.

T

Tables and figures:

Declining balance depreciation rates, Declining balance rates.

Improvements, examples of (Table 1),

MACRS optional tables (Table 4–D), Table 4-D.

MACRS optional tables (Tables 4–A, 4–B, and 4–C), Tables 4-A, 4-B, and 4-C.

MACRS recovery periods for rental activity property (Table 3), Table 3. MACRS Recovery Periods for Property Used in Rental Activities

Tax credits:

Residential energy credit allowed before 1986, effect on basis, Decreases to basis.

Tax help, How To Get Tax Help

Tax return preparation fees, Other Expenses, Tax return preparation.

Taxes:

Deduction of, Other Expenses

Local benefit taxes, Local benefit taxes.

Real estate taxes, Real estate taxes.

Transfer taxes, Settlement fees and other costs.

Taxpayer Advocate, Contacting your Taxpayer Advocate.

Theft losses, Theft.

Title insurance, Settlement fees and other costs.

Transfer taxes, Settlement fees and other costs.

Travel and transportation expenses:

Local transportation expenses, Other Expenses, Local transportation expenses.

Recordkeeping, Travel expenses.

Rental expenses, Other Expenses, Travel expenses.

Standard mileage rate, Local transportation expenses.

TTY/TDD information, How To Get Tax Help

U

Use of home:

Before or after renting, Use as Main Home Before or After Renting

Change to rental use, Property Changed to Rental Use, Personal home changed to rental use.

Days of personal use, Dwelling Unit Used as Home, Figuring Days of Personal Use

Fair rental price, Fair rental price.

Minimal rental use exception, Exception for minimal rental use.

Passive activity rules exception, Property used as a home.

Personal use as dwelling unit, Personal Use of Dwelling Unit (Including Vacation Home)

Rental income and deductions, Property Used as a Home

Utilities, Other Expenses, Increases to basis.

V

Vacant rental property, Vacant rental property.

Vacation homes:

Dividing of expenses, How To Divide Expenses

Dwelling unit, Dwelling unit.

Fair rental price, Fair rental price.

Minimal rental use exception, Exception for minimal rental use.

Personal use of, Personal Use of Dwelling Unit (Including Vacation Home)

Valuation:

Fair market value, Fair market value.