Rental income is any payment received for the use or occupation of real property. Real property includes houses, apartments, condominiums, mobile homes, boats, vacation homes, or similar properties. This course discusses the reporting of rental income and expenses on Form 1040 Schedule E, and the rules that apply in various rental property scenarios.

The course will include the tax issues that arise when a client uses a rental property for personal use and how personal use affects the ability to deduct expenses and depreciation. Passive activity losses will be reviewed, so that students will understand what a passive activity loss is and how to apply the passive activity loss rules. The course will also touch briefly on other types of income reported on Schedule E such as oil and gas royalties and income from partnerships and S corporations reported on Schedule K-1.

Upon successful completion of this course, students will be able to: 

• identify transactions that are considered rental real estate income to the property owner
• identify transactions that are considered deductible rental real estate expenses, differentiating between repairs and improvements
• given a list of receipts and expenses related to a rental property, determine the owner's basis in the property;
• identify the criteria that determine whether a taxpayer's rental activity income and losses are classified as passive or nonpassive
• identify the methods used to calculate rental income and expenses for properties that are used for part personal, part business use during a tax year

Tax Year: 2022

Tax professionals with a client base that has multiple sources of income, Including rental real estate, royalties, partnerships, S Corporations, estates, and trusts, looking to expand or refresh their knowledge of the Schedule E.