Instructions For Form K-40h Page 4
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6Complete the following worksheet to determine the
No homestead refund is allowed for residences not
subject to property tax.
percent of rental/business use to enter in the “Owners
Statement” section, and the property tax amount to
Section Eight Housing: If you rent Section Eight
enter on line 11, front of Form K-40H. If you filed
Housing, part or all of your rent is paid by HUD
Schedule C or C-EZ, Form 1040, complete only lines
(Housing and Urban Development). You may claim
4 through 6 of the worksheet.
only the portion of rent YOU paid on Schedule RNT.
Rental/Business Use of Home Worksheet
Rent on your apartment is $300 per
month. HUD pays $275, you pay $25.
1. Total number of rooms in your homestead.
Only the $25 you pay is used to compute
2. Number of rooms rented or used for
total rent paid on Schedule RNT.
business.
3. Divide line 2 by line 1. This is the percent
Nursing Home, Retirement, or Assisted Living
of rental/business use. Enter this
Facility Residents: If the facility in which you are
percentage in the “Owner’s Statement”
living and paying rent is subject to property tax,
section, back of Form K-40H.
complete Schedule RNT for the rent you paid. If
4. Total 1998 general property tax.
welfare or public assistance funds are paid directly to
5. Multiply line 4 by line 3. (If you claimed a
the nursing home for your rent, you may only use the
property tax deduction on Schedule C or
rent YOU pay in completing Schedule RNT.
C-EZ, Form 1040, enter the amount from
Schedule C or C-EZ on line 5.) This is the
rental/business portion of the property
Your nursing home costs $55 per day,
taxes.
billed monthly as $1,650. You pay
6. Subtract line 5 from line 4.
$800 per month; the balance is paid
This is the general property tax on the
by SRS. You will only use the $800 per
non-business portion of your homestead.
month to figure the total rent you paid on line 2 of
Enter this amount on line 11 of Form K-40H.
Schedule RNT.
NOTE: You must also include the income received
You must enclose ALL Schedule RNT forms
from rental or business use of your homestead on
with Form K-40H.
line 5 of Form K-40H.
Line 13 — Total (not to exceed $600)
Line 12 — Renter
Add lines 11 and 12. If the total is $600 or less,
To qualify under the renter provisions of the
enter the total of lines 11 and 12 on line 13.
homestead law, the property you rent must be subject
to property tax. Before completing Schedule RNT for
Your mobile home taxes (line 11) are
the rent you paid, you MUST contact the county clerk,
$285. Your lot rent paid as property tax
your landlord, or authorized agent to be sure the
from line 12 is $120. $285 + $120 = $405.
property is on the tax rolls.
Enter $405 on line 13.
If the property you rented all of 1998 is
If the total of lines 11 and 12 is more than $600,
not on the tax rolls, you do not qualify
enter $600 on line 13.
for a homestead refund.
Your general property tax on line 11 is
$750. You have no entry on line 12.
A renter’s homestead refund is based on 20% of
Enter $600 (the maximum amount
the “rent paid for occupancy.” This is the total rent
allowed) on line 13.
you paid during 1998, less the value of any furniture,
utilities, or services paid for or furnished by your
Line 14 — Homestead Refund Percentage
landlord.
Complete a Schedule RNT for each property you
(Use the chart on page 6)
resided in during 1998 (even if you paid no rent).
The homestead refund percentage is based on your
Follow the detailed instructions on the back of
total household income on line 10. Find your income
Schedule RNT to complete an accurate form.
on the left of the chart, and enter the corresponding
Low Income Housing: If you rent low income or
percentage on line 14. If the percentage is less than
subsidized housing, check with your landlord to make
100%, leave the first box blank. For example, if line
sure the property is subject to property tax. (As a
14 is 40%, enter:
general rule, if you pay your rent to a local housing
authority, the property is owned by the city and is not
4 0
%
subject to property tax).
Page 18
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