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Income or Loss From Rental Real estate and Royalties

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Income or Loss From Rental Real estate and Royalties


Income or Loss From Rental Real Estate and Royalties 

This section is to report:

  • Income and expenses from rental real estate (including personal property leased with real estate), and
  • Royalty income and expenses

See Schedule E instructions to determine if you should report your rental real estate and royalty income on Schedule C, or form 4835 instead of Schedule E.

If you own a part interest in a rental real estate property, report only your part of the income and expenses on Schedule E.

If you have more than three rental real estate or royalty properties, complete as many Schedules E as you need to list them.

Personal Property 

Do not use Schedule E to report income and expenses from the rental of personal property, such as equipment or vehicles. Instead, use Schedule C if you are in the business of renting personal property if the primary purpose for renting the property is income or profit and you are involved in the rental activity with continuity and regularity.

If your rental of personal property is not a business, see instructions for Form 1040, lines 21 and 36, to find out how to report the income expenses.

Extraterritorial Income Exclusion 

Except as otherwise provided in the Internal Revenue Code, gross income includes all income from whatever source derived. Gross income, however, does not include 60% of extraterritorial income that is qualifying foreign trade income. Use Form 8873 when figuring the extraterritorial income exclusion. Report it on Schedule E as explained in the Instructions for Form 8873.

For more information, see the Instructions for the Schedule E from the IRS Web site.

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Views: 2623 Created on: Jun 15, 2013
Date updated: Dec 02, 2021

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