Schedule E
Schedule E
Supplemental Income and Loss
Every line is explained below in plain English — click any line to see what it means, who needs to fill it in, and what people commonly overlook.
Rental Real Estate and Royalties
- 1b Property Type The numeric code identifying what kind of rental property you own.
- 2 Personal Use and Fair Rental Days The number of days each property was rented at fair market value and the number of days you used it personally during the year.
- 3 Rents Received Total rent payments you received (or that were received on your behalf) for each property during the tax year.
- 4 Royalties Received Total royalty payments you received during the tax year, reported to you on Form 1099-MISC Box 2.
- 5 Advertising The cost of advertising your rental property to attract tenants.
- 6 Auto and Travel Travel costs for trips to your rental property for maintenance, repairs, rent collection, or management tasks.
- 7 Cleaning and Maintenance Costs to keep your rental property clean and in working order.
- 8 Commissions Fees paid to agents, property managers, or platforms for finding tenants or facilitating rental transactions.
- 9 Insurance Premiums you paid for insurance covering your rental property.
- 10 Legal and Professional Fees Fees paid to attorneys, accountants, property managers (for tax preparation), and other professionals for services related to your rental activity.
- 11 Management Fees Fees paid to a property management company or individual for managing your rental property.
- 12 Mortgage Interest Paid Interest paid on a mortgage secured by the rental property. This is the interest portion only -- not principal payments, which are not deductible.
- 13 Other Interest Interest paid on loans related to the rental property that do not come from a bank or financial institution.
- 14 Repairs Costs to fix or restore your rental property to its normal operating condition without adding value, adapting it to a new use, or extending its useful...
- 15 Supplies Materials and supplies used for the operation, maintenance, or upkeep of your rental property.
- 16 Taxes Real estate taxes (property taxes) paid on your rental property during the tax year.
- 17 Utilities The cost of utilities you pay for your rental property -- electricity, gas, water, sewer, trash collection, internet, and cable.
- 18 Depreciation Expense or Depletion The annual depreciation deduction for the building (not land), capital improvements, appliances, and furnishings in your rental property -- plus depletion...
- 19 Other Expenses Any ordinary and necessary rental expenses that do not fit on lines 5 through 18. You must list each expense type and amount separately.
- 20 Total Expenses The sum of all expenses on lines 5 through 19 for each property. Each property column (A, B, C) gets its own total.
- 21 Income or Loss Per Property Your net income or loss for each rental property, calculated by subtracting total expenses (line 20) from rents received (line 3) and/or royalties received...
- 22 Deductible Rental Real Estate Loss The portion of your rental real estate loss that is actually deductible after applying passive activity loss limitations.
- 26 Total Rental and Royalty Income or Loss The combined total of all rental real estate and royalty income or loss from Part I. This is the bottom line of Part I -- the net result of all your rental...
Partnerships and S Corporations
- 27 Prior Year Loss Limitation A yes-or-no question asking whether you are reporting any loss from a partnership or S corporation that was not allowed in a prior year due to at-risk...
- 28 Partnership and S Corporation Entries The identifying information for each partnership and S corporation you are a partner or shareholder in.
- 29a Passive Income From Partnerships Your share of net income from partnerships and S corporations in which you do not materially participate.
- 29b Nonpassive Income From Partnerships Your share of net income from partnerships and S corporations in which you materially participate.
- 30 Passive Loss From Partnerships Your share of net loss from partnerships and S corporations in which you do not materially participate.
- 31 Nonpassive Loss From Partnerships Your share of net loss from partnerships and S corporations in which you materially participate.
- 32 Total Partnership and S Corporation Income or Loss The combined total of all passive and nonpassive income and loss from every partnership and S corporation listed on line 28.
Estates and Trusts
- 33 Estate and Trust Entries The identifying information for each estate or trust from which you received income or loss during the year.
- 34a Passive Income From Estates and Trusts Your share of passive income from estates and trusts.
- 34b Nonpassive Income From Estates and Trusts Your share of nonpassive income from estates and trusts -- income from activities in which you materially participate or that are classified as nonpassive...
- 35 Passive Loss From Estates and Trusts Your share of passive loss from estates and trusts -- losses from activities in which you do not materially participate.
- 36 Nonpassive Loss From Estates and Trusts Your share of nonpassive loss from estates and trusts -- losses from activities in which you materially participate or that are classified as nonpassive by...
- 37 Total Estate and Trust Income or Loss The combined total of all passive and nonpassive income and loss from every estate and trust listed on line 33.
REMICs
Summary
- 39 Farm Rental Income Net farm rental income or loss from Form 4835.
- 40 Total Supplemental Income or Loss The grand total of all supplemental income and loss reported on Schedule E. Line 40 combines the totals from all five parts: rental real estate and...
- 41 Reconciliation for Farming and Fishing Income A reconciliation line for taxpayers who report net farm rental income on line 39 and also have farming or fishing income from other sources.