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If you earn rental income on a home or building you own, receive royalties or have income reported on a Schedule K-1 from a partnership or S corporation, then you must prepare a Schedule E with your tax return.
Your total taxable income or loss is reported on line 26 of Schedule E. The first and most important place you will see the end result of IRS Schedule E appear is line 8 of your IRS Form 1040. Here you should see the full amount of net income or loss from your rental properties.
Use Schedule E (Form 1040) to report income or loss from rental real estate, royalties, partnerships, S corporations, estates, trusts, and residual interests in real estate mortgage investment conduits (REMICs).
If youre doing your own taxes and filing by mail, you can print a copy of Schedule E from the IRS website and fill it out to file with your Form 1040. Otherwise, your tax accountant can provide a copy, or software such as TurboTax will automatically include it in your return if applicable.
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