Rental Real Estate Federal Taxation: Form 1040 Schedule E, Part I

Summary

This practice note examines the multifaceted dynamics underlying federal taxation of rental real estate, focusing on nuances that can be overlooked by real estate investors seeking return on investment that is based largely on rental income. The practice note focuses on elements that real estate investors need to consider for compliance purposes when completing the first page of 2024 Form 1040 Schedule E, Part I. Schedule E, "Supplemental Income and Loss," filed in conjunction with Form 1040, "U.S., Individual Income Tax Return," is used to report income or loss from rental real estate, royalties, partnerships, S corporations, estates, trusts, and residual interests in real estate management investment conduits (REMICs). This note focuses on rental real estate reporting on Schedule E.