Schedule L (Form 1040a Or 1040) - 2010

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Schedule L (Form 1040A or 1040) 2010
Page
General Instructions
Line 7. If you check the “Yes” box, you
Motor home. A multi-purpose vehicle
may be able to include some or all of the
with motive power that is designed to
Who must use Schedule L. You must use
state or local sales and excise taxes you
provide temporary residential
Schedule L to figure your standard
paid in 2010 for any new motor vehicle(s)
accommodations, as evidenced by the
deduction if you:
(defined below) purchased after February
presence of at least four of the following
16, 2009, and before January 1, 2010.
facilities.
• Had a loss from a disaster that was
However, if the amount on Form 1040, line
declared a federal disaster in tax years
• Cooking.
38, or Form 1040A, line 22, is equal to or
beginning after 2007 and that occurred
• Refrigeration or ice box.
greater than $135,000 ($260,000 if married
before 2010, or
• Self-contained toilet.
filing jointly), you cannot include these
• Paid state or local sales or excise taxes
• Heating and/or air conditioning.
taxes.
(or certain other taxes or fees in a state
• Potable water supply system including a
To determine the amount of state or local
without a sales tax) in 2010 for the
faucet and sink.
sales and excise taxes to enter on line 7,
purchase of any new motor vehicle(s) after
refer to the sales invoice(s) for any new
February 16, 2009, and before January 1,
• Separate 110-125 volt electrical power
motor vehicle(s) you purchased. Taxes
2010.
supply and/or propane.
deductible in arriving at adjusted gross
Note. See your tax return instructions to
Line 8. Enter on line 8 the cost of the new
income, such as taxes on a vehicle used in
figure your standard deduction if you are
motor vehicle(s). Do not include on line 8
your business, cannot be used to increase
not claiming any of the items listed above.
any state or local sales or excise taxes you
your standard deduction.
entered on line 7.
If you checked the box on Form
States with no sales tax. The states of
!
Line 9. If you check the “Yes” box, the
1040, line 39b, or Form 1040A,
Alaska, Delaware, Hawaii, Montana, New
amount you can include for state or local
line 23b, your standard
Hampshire, and Oregon do not have a
sales and excise taxes is limited to the
CAUTION
deduction is zero, even if you
sales tax. However, you may be charged
taxes imposed on the first $49,500 of the
were born before January 2, 1946, were
other taxes or fees on the purchase of a
purchase price of each new motor vehicle.
blind, had a net disaster loss, or paid new
new motor vehicle in one of these six
To figure the amount to enter on line 9, you
motor vehicle taxes.
states that is similar to a sales tax. The
will need to know the rate(s) of tax that
taxes or fees that qualify must be assessed
Specific Instructions
apply in the state and locality where you
on the purchase of the vehicle and must be
purchased each new motor vehicle. If the
based on the vehicle’s sales price or as a
Line 3. Earned income includes wages,
state and locality where you purchased a
per unit fee. You can include these taxes or
salaries, tips, professional fees, and other
new motor vehicle imposes a fixed rate,
fees on line 7.
compensation received for personal
multiply the combined state and local rate
One example of a fee you can include on
services you performed. It also includes
by the smaller of $49,500 or the purchase
line 7 is the 3.75% document fee when
any amount received as a scholarship that
price (before taxes) of the new motor
registering a title with the Delaware Division
you must include in your income.
vehicle. See the Example below.
of Motor Vehicles. The fee is 3.75% of the
Form 1040 filers. Generally, your earned
Some taxing jurisdictions may provide
purchase price.
income is the total of the amount(s) you
for a sales tax that is limited to a certain
New motor vehicle. A new motor
reported on Form 1040, lines 7, 12, and 18,
dollar amount per purchase. One example
vehicle is any of the following. The original
minus the amount, if any, on line 27.
is Manatee County, Florida. Manatee
use of the vehicle must begin with you.
County charges an additional ½% (.005)
Form 1040A filers. Generally, your
discretionary sales tax that is collected on
• A passenger automobile or light truck
earned income is the amount you reported
the first $5,000 of a purchase, not to
that is self-propelled, designed to transport
on Form 1040A, line 7.
exceed $25.
people or property on a street or highway,
Line 6. Your standard deduction is
and the gross vehicle weight rating of the
Example. You purchased a new motor
increased by a loss from a disaster that
vehicle is not more than 8,500 pounds.
vehicle on December 3, 2009, for $56,500
was declared a federal disaster after 2007
before taxes. You paid the sales tax on
• A motorcycle (defined below) with a gross
and that occurred before 2010 but which
February 3, 2010. The state where you
vehicle weight rating of not more than
you could not deduct in the year it
purchased the vehicle imposes a fixed
occurred because you were not sure
8,500 pounds.
sales tax rate of 5% and the locality also
whether part of if would be reimbursed and
• A motor home (defined later).
charges a fixed rate of 1%, for a combined
you became reasonably certain in 2010
Motorcycle. A vehicle with motive power
fixed sales tax rate of 6%. The amount of
that it would not be reimbursed. This
having a seat or saddle for the use of the
sales tax you can include on line 9 is
amount is shown on Form 4684, line 17.
rider and designed to travel on not more
$2,970 ($49,500 x 6% (.06)).
You must file Form 1040 to claim a net
than three wheels in contact with the
disaster loss.
If you recover any portion of
ground.
!
your net disaster loss or new
motor vehicle tax deduction in
CAUTION
future tax years, you generally
have to include that amount in your
income. See Recoveries in Pub. 525 for
more information.

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