Index

A

Accelerated Cost Recovery System (ACRS), MACRS Depreciation
(see also Modified Accelerated Cost Recovery System (MACRS))
Effective date, Depreciation Methods
Accounting methods
Accrual method, Accrual method.
Cash method, Cash method.
Change of method, Changing your accounting method.
Constructive receipt of income, Cash method., More information.
Accrual method taxpayers, Accrual method.
ACRS (Accelerated Cost Recovery System)
Effective date, Depreciation Methods
Active participation, Active participation.
Activities not for profit, Duplex.
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.
Security deposits, Security deposits.
Advertising, Types of Expenses
Allocation of expenses
Change of property to rental use, Payments added to capital account.
How to divide expenses, Dividing 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, Electing ADS
MACRS, MACRS Depreciation, Table 2-2d.
Alternative minimum tax (AMT)
Accelerated depreciation methods, Alternative minimum tax (AMT).
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.
Attorneys' fees, Settlement fees and other costs., Increases to basis.
Automobiles
MACRS recovery periods, Property Classes 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, Cost or Other Basis Fully Recovered
Fair market value, Fair market value.
Increases to, Increases to basis.
MACRS depreciable basis, Basis of Depreciable Property
Property changed to rental use, Basis of Property Changed to Rental Use

C

Capital expenditures
Deductions vs. effect on basis, Deducting vs. capitalizing costs.
Local benefit taxes, Local benefit taxes.
Mortgages, payments to obtain, Expenses paid to obtain a mortgage.
Cars
MACRS recovery periods, Property Classes Under GDS
Cash method taxpayers, Cash method.
Casualty losses, Exception for Rental Real Estate With Active Participation
Change of accounting method, Changing your accounting method.
Charitable contributions
Use of property, Donation of use of the property.
Cleaning and maintenance, Types of Expenses
Closing costs, Settlement fees and other costs.
Commissions, Types of Expenses
Computers
MACRS recovery periods, Property Classes Under GDS
Condominiums, Condominiums, Dwelling unit.
Constructive receipt of income, Cash method., More information.
Cooperative housing, Cooperative apartments., Cooperatives, Dwelling unit.
Cost basis, Cost Basis
Credit reports, Settlement fees and other costs.
Credits
Residential energy credits, Decreases to basis.

D

Days of personal use, What is a day of personal use?
Days used for repairs and maintenance, Days used for repairs and maintenance.
Deductions
Capitalizing costs vs. effect on basis, Deducting vs. capitalizing costs.
Depreciation (see Depreciation)
Limitations on, Form 4562.
Passive activity losses (see Passive activity)
Depreciation, Depreciation of Rental Property, Changing your accounting method.
Alternative Depreciation System (ADS) (see Modified Accelerated Cost Recovery System (MACRS))
Basis (see Basis)
Change of accounting method, Changing your accounting method.
Change of property to rental use, Property Changed to Rental Use
Claiming correct amount of, Claiming the Correct Amount of Depreciation
Declining balance method, Depreciation Methods
Duration of property expected to last more than one year, What Rental Property Can Be Depreciated?
Eligible property, What Rental Property Can Be Depreciated?
First-year expensing, Section 179 deduction.
MACRS (see Modified Accelerated Cost Recovery System (MACRS))
Methods, Depreciation Methods, Figuring Your Depreciation Deduction
Ownership of property, What Rental Property Can Be Depreciated?, Property you own.
Rental expense, Depreciation.
Rented property, Rented property.
Section 179 deduction, Section 179 deduction.
Special depreciation allowances, Claiming the Special Depreciation Allowance
Straight line method, Depreciation Methods
Useful life, What Rental 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), What is a day of personal use?

E

Easements, Decreases to basis.
Equipment rental expense, Rental of equipment.

F

Fair market value (FMV), Fair market value.
Fair rental price, Dividing Expenses, Fair rental price.
Fees
Loan origination fees, Points, Settlement fees and other costs.
Points (see Points)
Settlement fees and other costs, Settlement fees and other costs.
Tax return preparation fees, Legal and other professional fees.
First-year expensing, Section 179 deduction.
Form 1040
Not rented for profit income, Where to report.
Part of property rented, Renting Part of Property
Rental income and expenses, Reporting Rental Income, Expenses, and Losses
Schedule E, Schedule E (Form 1040)
Form 1098
Mortgage interest, Form 1098, Mortgage Interest Statement.
Form 4684
Casualties and thefts, How to report.
Form 4797
Sales of business property, How to report.
Form 8582
Passive activity losses, Form 8582., Form 8582 not required.
Free tax services, Free help with your tax return.

G

Gains and losses
At-risk rules, At-Risk Rules
Casualty and theft losses, Exception for Rental Real Estate With Active Participation
Limits on rental losses, Form 4562.
Passive activity losses, Passive Activity Limits
Rental real estate activities, Exception for Rental Real Estate With Active Participation
Sale of rental property, Sale or exchange of rental property., How to report.
General depreciation system (GDS) (see Modified Accelerated Cost Recovery System (MACRS))

H

Help (see Tax help)
Home
Main home, Main home.
Use as rental property (see Use of home)

I

Improvements, Table 1-1.Examples of 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.
Insurance, Types of Expenses
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, Types of Expenses

L

Land
Cost basis, Separating cost of land and buildings.
Depreciation, Land.
Leases
Cancellation payments, Canceling a lease.
Equipment leasing, Rental of equipment.
Limits
Passive activity losses and credits, Passive Activity Limits
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

Missing children, photographs of, Reminders
Modified Accelerated Cost Recovery System (MACRS), MACRS Depreciation, Figuring MACRS Depreciation Under ADS
Additions or improvements to property, Additions or improvements to property.
Adjusted basis, Adjusted Basis
Alternative Depreciation System (ADS), MACRS Depreciation, Figuring MACRS Depreciation Under ADS
Basis other than cost, Basis Other Than Cost
Conventions, Conventions
Cost basis, Cost Basis
Depreciable basis, Basis of Depreciable Property
Effective date, Depreciation Methods
Excluded property, Excluded Property
General Depreciation System (GDS), MACRS Depreciation, Property Classes Under GDS, Figuring Your Depreciation Deduction
Nonresidential rental property, Property Classes Under GDS
Property used in rental activities (Table 2-1), Table 2-1.MACRS Recovery Periods for Property Used in Rental Activities
Recovery periods, Table 2-1.MACRS Recovery Periods for Property Used in Rental Activities, 5-, 7-, or 15-year property.
Residential rental property, Property Classes Under GDS, Residential rental property.
Special depreciation allowances, Claiming the Special Depreciation Allowance
Modified adjusted gross income (MAGI), Modified adjusted gross income (MAGI).
Mortgages, Expenses paid to obtain a mortgage.
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, Property Classes Under GDS
Not-for-profit activities, Duplex.

O

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

P

Part interest
Expenses, Part interest.
Income, Part interest.
Passive activity
Maximum special allowance, Maximum special allowance.
Personal property
Rental income from, Property or services.
Personal use of rental property, Payments added to capital account., Personal Use of Dwelling Unit (Including Vacation Home)
(see also Property changed to rental use)
Placed-in-service date, Placed in Service
Points, Types of Expenses, Points, Settlement fees and other costs.
Pre-rental expenses, Pre-rental expenses.
Principal residence (see Home)
Profit, property not rented for, Duplex.
Property changed to rental use, Payments added to capital account.
Basis, Basis of Property Changed to Rental Use
Publications (see Tax help)

R

Real estate professionals, 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, Local transportation expenses., Travel expenses.
Recovery periods, Property Classes Under GDS
Rent, Settlement fees and other costs.
Advance rent, Advance rent.
Fair price, Fair rental price.
Rental expenses, Rental Expenses
Advertising, Types of Expenses
Allocation between rental and personal uses, Dividing Expenses
Change of property to rental use, Property Changed to Rental Use
Cleaning and maintenance, Types of Expenses
Commissions, Types of Expenses
Depreciation, Depreciation.
Dwelling unit used as home, Dwelling Unit Used as a Home
Equipment rental, Rental of equipment.
Home, property also used as, Rental of property also used as your home.
Improvements, Table 1-1.Examples of Improvements
Insurance, Types of Expenses, Insurance premiums paid in advance.
Interest payments, Types of Expenses, Interest expense.
Local transportation expenses, Types of Expenses, Local transportation expenses.
Part of property rented, Renting Part of Property
Points, Types of Expenses, Points
Pre-rental expenses, Pre-rental expenses.
Rental payments, Types of Expenses
Repairs, Types of Expenses, Repairs and Improvements
Sale of property, Vacant while listed for sale.
Tax return preparation fees, Legal and other professional fees.
Taxes, Types of Expenses
Tenant, paid by, Expenses paid by tenant.
Travel expenses, Types of Expenses
Utilities, Types of Expenses
Vacant rental property, Vacant rental property.
Rental income
Advance rent, Advance rent.
Cancellation of lease payments, Canceling a lease.
Dwelling unit used as home, Dwelling Unit Used as a Home
Lease with option to buy, Lease with option to buy.
Not rented for profit, Not Rented for Profit
Part interest, Part interest.
Property received from tenant, Property or services.
Reporting, Accrual method., Which Forms To Use
Security deposit, Security deposits.
Services received from tenant, Property or services.
Uncollected rent, Uncollected rent.
Used as home, Rental of property also used as your home.
Rental losses, Exception for Rental Real Estate With Active Participation
(see also Gains and losses)
(see also Passive activity)
Repairs, Types of Expenses, 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, Vacant while listed for sale.
Gain or loss, Sale or exchange 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, Claiming the Special Depreciation Allowance
Spouse
Material participation, Participating spouse.
Standard mileage rates, Local transportation expenses.
Surveys, Settlement fees and other costs.

T

Tables and figures
Improvements, examples of (Table 1-1), Table 1-1.Examples of Improvements
MACRS optional tables (Table 2-2d), Table 2-2d.
MACRS optional tables (Tables 2-2a, 2-2b, and 2-2c), Tables 2-2a, 2-2b, and 2-2c.
MACRS recovery periods for property used in rental activities (Table 2-1), Table 2-1.MACRS Recovery Periods for Property Used in Rental Activities
Tax credits
Residential energy credits, effect on basis, Decreases to basis.
Tax help, How To Get Tax Help
Tax return preparation fees, Legal and other professional fees.
Taxes
Deduction of, Types of Expenses
Local benefit taxes, Local benefit taxes.
Real estate taxes, Real estate taxes.
Transfer taxes, Settlement fees and other costs.
Theft losses, Theft.
Title insurance, Settlement fees and other costs.
Transfer taxes, Settlement fees and other costs.
Travel and transportation expenses
Local transportation expenses, Types of Expenses, Local transportation expenses.
Recordkeeping, Travel expenses.
Rental expenses, Types of Expenses
Standard mileage rate, Local transportation expenses.

U

Uncollected rent
Income, Uncollected rent.
Use of home
Before or after renting, Days used as a main home before or after renting.
Change to rental use, Property Changed to Rental Use
Days of personal use, What is a day of personal use?
Fair rental price, Fair rental price.
Passive activity rules exception, Exception for Personal Use of Dwelling Unit
Personal use as dwelling unit, Personal Use of Dwelling Unit (Including Vacation Home)
Utilities, Types of Expenses, Increases to basis.

V

Vacant rental property, Vacant rental property.
Vacation homes
Dwelling unit, Dwelling unit.
Fair rental price, Fair rental price.
Personal use of, Personal Use of Dwelling Unit (Including Vacation Home)
Valuation
Fair market value, Fair market value.

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