Introduction to Schedule E Self-Study

Summary

If your client earns rental income on a home or building they own, receives royalties or has income reported on a Schedule K-1 from a partnership or S corporation, you must prepare a Schedule E with their return. Schedule E (Form 1040), Supplemental Income and Loss, is for reporting residential rental income and expenses, as well as pass-through items from S corporations, partnerships, estates and trusts. With this course, you’ll gain a basic understanding of Schedule E.

Objectives

Upon completion of this course, you will be able to:

• Identify passive loss limitations and exceptions.
• Determine eligibility for the special $25,000 loss allowance.
• Recognize who meets the qualifications of a real estate professional.
• Summarize the treatment of current and suspended passive losses upon disposition of a passive activity.
• Apply the vacation home rules.
• Identify the type of activities reported on Schedule E.
• Identify and report rental income and allowable rental expenses.
• Determine the depreciable basis of property used in a rental activity.
• Interpret the information provided on Schedule K-1 and enter the information appropriately on Schedule E.

Course Details

This course includes an e-book and exam questions to help you earn CPE. CPE is issued after the exam is successfully completed.