2011 Instructions For Schedule A (Form 1040) (Page 5 of 14) in pdf

from October 1 through December 31,

2. An aircraft or boat, if the tax rate was

If your mortgage payments include your

2011 (92 days). You would enter “1.189”

the same as the general sales tax rate.

real estate taxes, you can deduct only the

on line 3, figured as follows.

amount the mortgage company actually

3. A home (including a mobile home or

paid to the taxing authority in 2011.

prefabricated home) or substantial addition

January 1 –

to or major renovation of a home, but only

September 30:

1.00 x 273/365 =

0.748

if the tax rate was the same as the general

If you sold your home in 2011, any real

October 1 –

sales tax rate and any of the following ap-

estate tax charged to the buyer should be

December 31:

1.75 x 92/365 =

0.441

plies.

shown on your settlement statement and in

Total

1.189

box 5 of any Form 1099-S you received.

a. Your state or locality imposes a gen-

This amount is considered a refund of real

What if you lived in more than one

eral sales tax directly on the sale of a home

estate taxes. See Refunds and rebates be-

locality in the same state during 2011?

or on the cost of a substantial addition or

low. Any real estate taxes you paid at clos-

Complete a separate worksheet for lines 2

major renovation.

ing should be shown on your settlement

through 6 for each locality in your state if

b. You purchased the materials to build

statement.

you lived in more than one locality in the

a home or substantial addition or to per-

same state during 2011 and either of the

form a major renovation and paid the sales

following applies.

You must look at your real es-

tax directly.

•

Each locality did not have the same

tate tax bill to decide if any non-

c. Under your state law, your contractor

local general sales tax rate.

deductible itemized charges,

is considered your agent in the construction

•

You lived in Los Angeles County,

such as those listed above, are

of the home or substantial addition or the

CA.

included in the bill. If your taxing authority

performance of a major renovation. The

(or lender) does not furnish you a copy of

contract must state that the contractor is

To figure the amount to enter on line 3

your real estate tax bill, ask for it.

of the worksheet for each locality in which

authorized to act in your name and must

you lived (except a locality for which you

follow your directions on construction de-

used the table on page A-14 to figure your

Refunds and rebates.

If you received a re-

cisions. In this case, you will be considered

local general sales tax deduction), multiply

fund or rebate in 2011 of real estate taxes

to have purchased any items subject to a

the local general sales tax rate by a fraction.

you paid in 2011, reduce your deduction by

sales tax and to have paid the sales tax

The numerator of the fraction is the number

the amount of the refund or rebate. If you

directly.

of days you lived in the locality during

received a refund or rebate in 2011 of real

2011 and the denominator is the total num-

estate taxes you paid in an earlier year, do

Do not include sales taxes paid on items

ber of days in the year (365).

not reduce your deduction by this amount.

used in your trade or business. If you re-

Instead, you must include the refund or re-

Example. You lived in Locality 1 from

ceived a refund of state or local general

bate in income on Form 1040, line 21, if

January 1 through August 31, 2011 (243

sales taxes in 2011, see Refund of general

you deducted the real estate taxes in the

days), and in Locality 2 from September 1

sales taxes .

earlier year and the deduction reduced your

through December 31, 2011 (122 days).

tax. See Recoveries in Pub. 525 for details

The local general sales tax rate for Locality

on how to figure the amount to include in

1 is 1%. The rate for Locality 2 is 1.75%.

Line 6

income.

You would enter “0.666” on line 3 for the

Locality 1 worksheet and “0.585” for the

Real Estate Taxes

Locality 2 worksheet, figured as follows.

Line 7

Include taxes (state, local, or foreign) you

Locality 1:

1.00 x 243/365 =

0.666

paid on real estate you own that was not

Personal Property Taxes

Locality 2:

1.75 x 122/365 =

0.585

used for business, but only if the taxes are

based on the assessed value of the property.

Enter the state and local personal property

Also, the assessment must be made uni-

Line 6.

If you lived in more than one local-

taxes you paid, but only if the taxes were

ity in the same state during 2011, you

formly on property throughout the commu-

based on value alone and were imposed on

should have completed line 1 only on the

nity, and the proceeds must be used for

a yearly basis.

first worksheet for that state and separate

general community or governmental pur-

worksheets for lines 2 through 6 for any

poses. Pub. 530 explains the deductions

Example. You paid a yearly fee for the

other locality within that state in which you

homeowners can take.

registration of your car. Part of the fee was

lived during 2011. If you checked the

based on the car’s value and part was based

“Yes” box on line 6 of any of those work-

Do not include the following amounts

on its weight. You can deduct only the part

sheets, multiply line 5 of that worksheet by

on line 6.

of the fee that was based on the car’s value.

the amount that you entered on line 1 for

•

Itemized charges for services to spe-

that state on the first worksheet.

cific property or persons (for example, a

$20 monthly charge per house for trash col-

Line 7.

Enter on line 7 any state and local

Line 8

lection, a $5 charge for every 1,000 gallons

general sales taxes paid on the following

of water consumed, or a flat charge for

specified items. If you are completing more

Other Taxes

mowing a lawn that had grown higher than

than one worksheet, include the total for

If you had any deductible tax not listed on

permitted under a local ordinance).

line 7 on only one of the worksheets.

line 5, 6, or 7, list the type and amount of

•

Charges for improvements that tend to

1. A motor vehicle (including a car, mo-

tax. Enter only one total on line 8. Include

increase the value of your property (for ex-

torcycle, motor home, recreational vehicle,

on this line income tax you paid to a foreign

ample, an assessment to build a new side-

sport utility vehicle, truck, van, and

country or U.S. possession.

walk). The cost of a property improvement

off-road vehicle). Also include any state

is added to the basis of the property. How-

and local general sales taxes paid for a

ever, a charge is deductible if it is used only

You may want to take a credit

leased motor vehicle. If the state sales tax

to maintain an existing public facility in

for the foreign tax instead of a

rate on these items is higher than the gen-

TIP

service (for example, a charge to repair an

deduction. See the instructions

eral sales tax rate, only include the amount

existing sidewalk, and any interest included

for Form 1040, line 47, for de-

of tax you would have paid at the general

sales tax rate.

in that charge).

tails.

A-5

2011 Instructions For Schedule A (Form 1040) Page 5

Related Articles

Related forms

Related Categories