Instructions For Schedule A (Form 1040) - Itemized Deductions

Locality 1 worksheet and “0.585” for the

Locality 1:

$100 x 243/365 = $ 67

Line 6

Locality 2 worksheet, figured as follows.

Locality 2:

$150 x 122/365 =

Total

= $117

Real Estate Taxes

Locality 1:

1.00 x 243/365 =

0.666

Locality 2:

1.75 x 122/365 =

0.585

Line 3.

If you lived in California, check the

If you are a homeowner who

“No” box if your combined state and local

received assistance under a

TIP

general sales tax rate is 7.7459%. Other-

State Housing Finance Agency

Line 6.

If you lived in more than one local-

wise, check the “Yes” box and include on

Hardest Hit Fund program or an

ity in the same state during 2011, you

line 3 only the part of the combined rate

Emergency Homeowners’ Loan program,

that is more than 7.7459%.

should have completed line 1 only on the

see Pub. 530 for the amount you can deduct

first worksheet for that state and separate

on line 6.

If you lived in Nevada, check the “No”

worksheets for lines 2 through 6 for any

box if your combined state and local gen-

Include taxes (state, local, or foreign)

other locality within that state in which you

eral sales tax rate is 6.8500%. Otherwise,

you paid on real estate you own that was

lived during 2011. If you checked the

check the “Yes” box and include on line 3

not used for business, but only if the taxes

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

only the part of the combined rate that is

are based on the assessed value of the prop-

sheets, multiply line 5 of that worksheet by

more than 6.8500%.

erty. Also, the assessment must be made

the amount that you entered on line 1 for

uniformly on property throughout the com-

What if your local general sales tax rate

that state on the first worksheet.

munity, and the proceeds must be used for

changed during 2011? If you checked the

general community or governmental pur-

“Yes” box and your local general sales tax

poses. Pub. 530 explains the deductions

rate changed during 2011, figure the rate to

Line 7.

Enter on line 7 any state and local

homeowners can take.

enter on line 3 as follows. Multiply each tax

general sales taxes paid on the following

rate for the period it was in effect by a

specified items. If you are completing more

Do not include the following amounts

fraction. The numerator of the fraction is

on line 6.

than one worksheet, include the total for

the number of days the rate was in effect

•

line 7 on only one of the worksheets.

Itemized charges for services to spe-

during 2011 and the denominator is the to-

cific property or persons (for example, a

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

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

$20 monthly charge per house for trash col-

torcycle, motor home, recreational vehicle,

the total of the prorated tax rates on line 3.

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

sport utility vehicle, truck, van, and

Example. Locality 1 imposed a 1% lo-

of water consumed, or a flat charge for

off-road vehicle). Also include any state

cal general sales tax from January 1

mowing a lawn that had grown higher than

and local general sales taxes paid for a

through September 30, 2011 (273 days).

permitted under a local ordinance).

leased motor vehicle. If the state sales tax

The rate increased to 1.75% for the period

•

Charges for improvements that tend to

rate on these items is higher than the gen-

from October 1 through December 31,

increase the value of your property (for ex-

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

eral sales tax rate, only include the amount

ample, an assessment to build a new side-

on line 3, figured as follows.

of tax you would have paid at the general

walk). The cost of a property improvement

sales tax rate.

is added to the basis of the property. How-

January 1 –

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

ever, a charge is deductible if it is used only

September 30:

1.00 x 273/365 =

0.748

the same as the general sales tax rate.

to maintain an existing public facility in

October 1 –

service (for example, a charge to repair an

3. A home (including a mobile home or

December 31:

1.75 x 92/365 =

0.441

existing sidewalk, and any interest included

prefabricated home) or substantial addition

Total

1.189

in that charge).

to or major renovation of a home, but only

What if you lived in more than one

if the tax rate was the same as the general

If your mortgage payments include your

locality in the same state during 2011?

sales tax rate and any of the following ap-

real estate taxes, you can deduct only the

Complete a separate worksheet for lines 2

amount the mortgage company actually

plies.

through 6 for each locality in your state if

paid to the taxing authority in 2011.

a. Your state or locality imposes a gen-

you lived in more than one locality in the

If you sold your home in 2011, any real

eral sales tax directly on the sale of a home

same state during 2011 and either of the

estate tax charged to the buyer should be

following applies.

or on the cost of a substantial addition or

shown on your settlement statement and in

•

major renovation.

Each locality did not have the same

box 5 of any Form 1099-S you received.

local general sales tax rate.

b. You purchased the materials to build

This amount is considered a refund of real

•

a home or substantial addition or to per-

You lived in Los Angeles County,

estate taxes. See Refunds and rebates be-

form a major renovation and paid the sales

CA.

low. Any real estate taxes you paid at clos-

tax directly.

To figure the amount to enter on line 3

ing should be shown on your settlement

c. Under your state law, your contractor

statement.

of the worksheet for each locality in which

is considered your agent in the construction

you lived (except a locality for which you

You must look at your real es-

of the home or substantial addition or the

used the 2011 Optional Local Sales Tax

tate tax bill to decide if any non-

performance of a major renovation. The

Tables for Certain Local Jurisdictions to

deductible itemized charges,

contract must state that the contractor is

figure your local general sales tax deduc-

such as those listed above, are

tion), multiply the local general sales tax

authorized to act in your name and must

included in the bill. If your taxing authority

rate by a fraction. The numerator of the

follow your directions on construction de-

(or lender) does not furnish you a copy of

fraction is the number of days you lived in

cisions. In this case, you will be considered

your real estate tax bill, ask for it.

the locality during 2011 and the denomina-

to have purchased any items subject to a

tor is the total number of days in the year

sales tax and to have paid the sales tax

Refunds and rebates.

If you received a re-

(365).

directly.

fund or rebate in 2011 of real estate taxes

Example. You lived in Locality 1 from

you paid in 2011, reduce your deduction by

January 1 through August 31, 2011 (243

the amount of the refund or rebate. If you

Do not include sales taxes paid on items

days), and in Locality 2 from September 1

received a refund or rebate in 2011 of real

used in your trade or business. If you re-

through December 31, 2011 (122 days).

estate taxes you paid in an earlier year, do

ceived a refund of state or local general

The local general sales tax rate for Locality

not reduce your deduction by this amount.

sales taxes in 2011, see Refund of general

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

Instead, you must include the refund or re-

sales taxes , earlier.

You would enter “0.666” on line 3 for the

bate in income on Form 1040, line 21, if

A-5

Instructions For Schedule A (Form 1040) - Itemized Deductions - 2011 Page 5

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