8825-2025

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Normally, taxation is quite cumbersome. The importance of the event puts some pressure on the individual, and completing the form can be challenging. Every character in the 8825 for 2025 matters at such a crucial moment, so completing a printed form may take a lot more effort and time than an electronic one. To make this process more efficient, use DocHub and complete your tax year easily.

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For 1120-S and 1065 returns, there are two ways to enter rental income: Use screen 8825 (Rental Real Estate) to enter income and expenses from rental real estate. Use screen RENT (Rental (Non-Real Estate)) to enter rental income from sources other than real estate, such as equipment rental.
Third, all rental activities, including short-term rental (STR) activities, within a partnership tax return are reported on Form 8825.
Partnerships and S corporations use Form 8825 to report income and deductible expenses from rental real estate activities, including net income (loss) from rental real estate activities that flow through from partnerships, estates, or trusts. Before completing this form, be sure to read the following.
Depreciation expense taken by a real estate investor is recaptured when the property is sold. Depreciation recapture is taxed at an investors ordinary income tax rate, up to a maximum of 25%. Remaining profits from the sale of a rental property are taxed at the capital gains tax rate of 0%, 15%, or 20%.
Like with EBITDA (for corporate finance), depreciation is a non-cash expense and is therefore added back to NIBT when calculating NOI.
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People also ask

Line 8c - Depreciation: Add back the amount of the depreciation deduction reported on Form 1065 and/or on Form 8825. Line 8d - Depletion: Add back the amount of the depletion deduction reported on Form 1065.
Its simple. Depreciation is a non-cash expense, which means that it needs to be added back to the cash flow statement in the operating activities section, alongside other expenses such as amortization and depletion.
Depreciation should be added back since this has already been deducted but as a capital expense it is not allowed for tax purposes. Instead, a deduction is given in the form of capital allowances (these are dealt with later).

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