Schedule E or Schedule E is the official IRS tax form used to report supplemental income from a wide range of sources, including real estate investments.
You will use Schedule E (Form 1040) to report your income or loss from rental real estate, royalties, partnerships, S corporations, estates, trusts, and residual interests in real estate mortgage investment conduits (REMICs).
Individual taxpayers who earn supplemental income from rental real estate, regardless of the type of property, must attach a Schedule E tax form to IRS Form 1040.
Both full-time real estate investors and house pirates who rent out spare rooms employ Schedule E to report their supplemental income from rental properties and real estate investments on their tax returns. However, when learning about schdule E, it is also important to keep in mind that the tax form is used by individual taxpayers in particular.
Partnerships and S corporations must file Form 8825 instead.
