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Schedule E – Rents & Royalties Main Menu

Rents & Royalties

K-1 Input

 Income or Loss from REMICS Part V – Form 4835 – Net Farm/Rental Reconciliation

Form 8582 (Passive Activity Loss Limitations)

Made Payments that would Require Filing Form(s) 1099? – Payments of rents, fees, and nonemployee compensation in the amount of $600 or more to a single payee are generally required reported on Form 1099-MISC. Answer YES to this question if the taxpayer is required to file 1099-MISC for any payees. (Generally, payees must receive their copy of the 1099-MISC by February 18, whereas the IRS copies must be sent by February 28.)

Did You or Will You File All Required Forms 1099? – If the previous question is answered YES, this question also needs to be answered.

IRC Section 469(c)(7)(A) Election – If the taxpayer is making an election to combine all rental real estate interests into one activity per Section 469(c)(7)(A), answer YES. A statement will be included with the return indicating this election. See Revenue Procedure 2011-34.

Form 4562

Attach PDF Document for Rental Safe Harbor Election – If a rental property qualifies for the Qualified Business Income Deduction, and the taxpayer is making the rental safe harbor election, a PDF copy of a statement to that effect must be attached to the return. The statement must include:

  • the address and rental category of each rental real estate property included in each rental real estate enterprise;
  • the address and rental category of each rental real estate property acquired or disposed of during the tax year; and
  • representation that the requirements of Revenue Procedure 2019-38 have been met.

See Revenue Procedure 2019-38 for information about the requirements.

Additional Information:

Instructions for Form 8582, Passive Activity Loss Limitations

Instructions for Schedule E, Supplemental Income and Loss Instructions

Instructions for Schedule F, Profit or Loss From Farming

Instructions for Schedule J, Income Averaging for Farmers and Fishermen

Publication 225, Farmer’s Tax Guide

Updated on September 9, 2020

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