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This article demonstrates how to complete SCH E for a rental or royalty.
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About SCH E
Taxpayers use SCH E to report income or loss from rental real estate, royalties, partnerships, S corporations, estates, trusts, and residual interest in real estate mortgage investment conduits (REMICs).
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Select Add Form.
Locate and highlight SCH-E in the All Forms & Schedules Menu. Double-click to add.
Complete Part I-Income or Loss From Rental Real Estate and Royalties.
When completing SCH E each rental or royalty will be assigned a different letter. If there are more than three rentals or royalties add another SCH E occurrence.
For rentals, all lines must be completed in Part I.
Enter the property type code first. For a list of property types select Choices. If chose property type “6” for royalties skip to step 3F.
Repeat this process for additional properties on lines B and C.
Complete the address section in “A”.
Enter the number of days rented.
Enter personal use days (if applicable).
Enter the QBI indicator.
Anchor 3F 3F 
Complete the income section as needed. Allocating income to the appropriate property/royalty A, B, or C.
If the taxpayer has linked 1099 forms, this income will be displayed on 3a (rents) or 4a (royalties) as shown.
If the taxpayer has rent or royalty payments not reported on 1099 forms, enter this income into 3a (rents) or 4a (royalties).
If the taxpayer has expenses, complete the expense section. Allocate expenses to the appropriate property/royalty A, B, or C.
For royalties, most information will autofill after you choose royalty as the property type (6).
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You can view a taxpayer's net income or (loss) from SCH E on SCH E, Line 26. |
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Related Articles What is the Qualified Business Income Deduction (QBID)? What is the BOI Reporting Requirement? Due Diligence Documents |