Instructions For Schedule A (Form 1040) - 2009 (Page 6 of 15) in pdf

used for business, but only if the taxes are

Locality 1:

$100 x 243/365 = $ 67

Locality 1:

1.00 x 243/365 =

0.666

Locality 2:

$150 x 122/365 =

Locality 2:

1.75 x 122/365 =

0.585

based on the assessed value of the property.

Total

= $117

Also, the assessment must be made uni-

Line 6.

If you lived in more than one local-

formly on property throughout the commu-

Line 3.

If you lived in California, check the

ity in the same state during 2009, you

nity, and the proceeds must be used for

“No” box if your combined state and local

should have completed line 1 only on the

general community or governmental pur-

general sales tax rate is 8.0034%. Other-

first worksheet for that state and separate

poses. Pub. 530 explains the deductions

wise, check the “Yes” box and include on

worksheets for lines 2 through 6 for any

homeowners can take.

line 3 only the part of the combined rate

other locality within that state in which you

that is more than 8.0034%.

lived during 2009. If you checked the

Do not include the following amounts

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

If you lived in Nevada, check the “No”

on line 6.

sheets, multiply line 5 of that worksheet by

box if your combined state and local gen-

the amount that you entered on line 1 for

•

eral sales tax rate is 6.6764%. Otherwise,

Itemized charges for services to spe-

that state on the first worksheet.

check the “Yes” box and include on line 3

cific property or persons (for example, a

only the part of the combined rate that is

Enter on line 7 any state and local

Line 7.

$20 monthly charge per house for trash col-

more than 6.6764%.

general sales taxes paid on the following

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

What if your local general sales tax rate

specified items. If you are completing more

of water consumed, or a flat charge for

changed during 2009? If you checked the

than one worksheet, include the total for

mowing a lawn that had grown higher than

“Yes” box and your local general sales tax

line 7 on only one of the worksheets.

permitted under a local ordinance).

rate changed during 2009, figure the rate to

•

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

Charges for improvements that tend to

enter on line 3 as follows. Multiply each tax

torcycle, motor home, recreational vehicle,

increase the value of your property (for ex-

rate for the period it was in effect by a

sport utility vehicle, truck, van, and

ample, an assessment to build a new side-

fraction. The numerator of the fraction is

off-road vehicle). Also include any state

walk). The cost of a property improvement

the number of days the rate was in effect

and local general sales taxes paid for a

is added to the basis of the property. How-

during 2009 and the denominator is the to-

leased motor vehicle. If the state sales tax

ever, a charge is deductible if it is used only

tal number of days in the year (365). Enter

rate on these items is higher than the gen-

the total of the prorated tax rates on line 3.

to maintain an existing public facility in

eral sales tax rate, only include the amount

service (for example, a charge to repair an

Example. Locality 1 imposed a 1% lo-

of tax you would have paid at the general

existing sidewalk, and any interest included

cal general sales tax from January 1

sales tax rate.

through September 30, 2009 (273 days).

in that charge).

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

The rate increased to 1.75% for the period

the same as the general sales tax rate.

from October 1 through December 31,

If your mortgage payments include your

3. A home (including a mobile home or

2009 (92 days). You would enter “1.189”

real estate taxes, you can deduct only the

prefabricated home) or substantial addition

on line 3, figured as follows.

amount the mortgage company actually

to or major renovation of a home, but only

paid to the taxing authority in 2009.

if the tax rate was the same as the general

January 1 –

sales tax rate and any of the following ap-

September 30:

1.00 x 273/365 =

0.748

plies.

If you sold your home in 2009, any real

October 1 –

December 31:

1.75 x 92/365 =

0.441

estate tax charged to the buyer should be

a. Your state or locality imposes a gen-

Total

1.189

shown on your settlement statement and in

eral sales tax directly on the sale of a home

box 5 of any Form 1099-S you received.

or on the cost of a substantial addition or

What if you lived in more than one

This amount is considered a refund of real

major renovation.

locality in the same state during 2009?

estate taxes. See Refunds and rebates be-

Complete a separate worksheet for lines 2

b. You purchased the materials to build

low. Any real estate taxes you paid at clos-

through 6 for each locality in your state if

a home or substantial addition or to per-

ing should be shown on your settlement

you lived in more than one locality in the

form a major renovation and paid the sales

statement.

same state during 2009 and either of the

tax directly.

following applies.

c. Under your state law, your contractor

•

Each locality did not have the same

is considered your agent in the construction

You must look at your real es-

local general sales tax rate.

of the home or substantial addition or the

tate tax bill to decide if any non-

•

performance of a major renovation. The

You lived in Los Angeles County,

deductible itemized charges,

contract must state that the contractor is

CA.

such as those listed above, are

authorized to act in your name and must

included in the bill. If your taxing authority

To figure the amount to enter on line 3

follow your directions on construction de-

(or lender) does not furnish you a copy of

of the worksheet for each locality in which

cisions. In this case, you will be considered

your real estate tax bill, ask for it.

you lived (except a locality for which you

to have purchased any items subject to a

used the table on page A-14 to figure your

sales tax and to have paid the sales tax

local general sales tax deduction), multiply

If you received a re-

Refunds and rebates.

directly.

the local general sales tax rate by a fraction.

fund or rebate in 2009 of real estate taxes

The numerator of the fraction is the number

Do not include sales taxes paid on items

you paid in 2009, reduce your deduction by

of days you lived in the locality during

used in your trade or business. If you re-

the amount of the refund or rebate. If you

2009 and the denominator is the total num-

ceived a refund of state or local general

received a refund or rebate in 2009 of real

ber of days in the year (365).

sales taxes in 2009, see Refund of general

estate taxes you paid in an earlier year, do

Example. You lived in Locality 1 from

sales taxes on page A-3.

not reduce your deduction by this amount.

January 1 through August 31, 2009 (243

Instead, you must include the refund or re-

days), and in Locality 2 from September 1

bate in income on Form 1040, line 21, if

through December 31, 2009 (122 days).

Line 6

you deducted the real estate taxes in the

The local general sales tax rate for Locality

earlier year and the deduction reduced your

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

Real Estate Taxes

tax. See Recoveries in Pub. 525 for details

You would enter “0.666” on line 3 for the

on how to figure the amount to include in

Locality 1 worksheet and “0.585” for the

Include taxes (state, local, or foreign) you

income.

Locality 2 worksheet, figured as follows.

paid on real estate you own that was not

A-5

Instructions For Schedule A (Form 1040) - 2009 Page 6

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