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Rents and Miscellaneous Income

By David Luhman on Mon, 05/11/2009 - 23:59

Rents and Miscellaneous Income - Schedule E

Reporting rental income

Passive loss rules

Partnership and Subchapter S corporation income

Trust income

Reporting rental income

Report income and expenses associated with rental property on Schedule E

Notice that after accounting for depreciation, you may have a loss on your property

Deductible losses are limited

This is all part of the "passive loss" rules

Passive loss rules

Part of Tax Reform Act of 1986

Attempt to reduce tax shelter activity

Complex part of tax law

All renting activities are classified as passive activities

So are most limited partnerships

Most passive losses cannot be deducted against your other income


Small-time landlords can deduct up to $25,000 in rental losses against other income if their AGI is below $100,000

If AGI is between $100,000 to $150,000 the ability to deduct rental losses is phased out

Partnership and Subchapter S corporation income

Income or loss is reported to you on Schedule K-1

Report on back of Schedule E

Trust income

If you're lucky enough to receive this kind of income, report it on the back of Schedule E

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