This article demonstrates how to complete SCH E for a rental or royalty.
Keep in mind every SCH E is different, so these instructions are not all inclusive and may not apply to every taxpayer.
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).
Completing SCH E
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.
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.
Complete the Income section. Allocate 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.
You can view a taxpayer's net income or (loss) from SCH E on SCH E, Line 26.