Reporting Rental Income
Rental income from real estate, including personal property leased with real estate, must be reported on Schedule E (Form 1040). This includes income from renting a room or other space. Each rental property should be reported in a separate column (A, B, or C) on Schedule E.
Forms and Instructions
- Schedule E (Form 1040): The primary form for reporting rental income and expenses. Use separate columns for each rental property.
- Form 4835: Used specifically for farm rental income and expenses. This form is distinct from Schedule E and is used when reporting farm-related rental activities.
- Publication 527: Provides detailed guidance on reporting rental income, expenses, and losses. It also clarifies when not to use Schedule E (e.g., for not-for-profit activities).
- Publication 519: Offers information on reporting rental income for nonresident aliens and foreign individuals, including how to report net rental income or loss on Schedule E and transfer it to Schedule 1 (Form 1040).
Reporting Requirements
Report all rental income received, including income from renting a room or other space. Any other income related to the rental property should also be included on Line 3 of Schedule E, with a statement attached to your return if necessary.
For farm rental income, use Form 4835 instead of Schedule E. This form is specifically designed for farm-related rental activities.
Additional Notes
- Net rental income or loss from Schedule E is transferred to Schedule 1 (Form 1040), Part I, line 5.
- Ensure you attach Schedule E and Schedule 1 to your Form 1040 return if applicable.
- For nonresident aliens, additional reporting requirements may apply, including attaching a statement for the first year of choosing to report rental income on Schedule E.
Source:
Schedule E (Form 1040)
Form 4835 - Farm Rental Income and Expenses
Publication 527 - Residential Rental Property
Publication 519 - Tax Information for Nonresident Aliens and Foreign Entities
Disclaimer: Always verify details with the official Federal or State Department of Revenue Forms and Instructions.