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Uses of a Schedule E for tax reporting.

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?

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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 Summary

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.

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