When would a taxpayer be required to complete a Schedule E? What type of rental property income is shown on Schedule E? How does the computation of income from rental properties differ from income computation on Schedule C?© BrainMass Inc. brainmass.com June 3, 2020, 11:53 pm ad1c9bdddf
Schedule E, page 1 is used to report rental real estate and royalty income. You would use Schedule E if you wanted to deduct expenses against your rental income.
When would a taxpayer be required to complete a Schedule E?
I would say that use of Schedule E is not required for rental property, but if expenses are to be deducted, then it is the required place to report.
There are other types of activity that report on page 2 of Schedule E including the taxpayer's percentage interest in the net activities of partnerships, S corporations, estates, trusts and other investment vehicles.
What type of rental property income is shown on Schedule E?
The solution explains the differences between Schedule E and Schedule C reporting including the basis for those differences and the tax affects in using the two different schedules.