Introduction to Schedule E Self-Study
Depending on the housing market, renting a home may be more popular than buying, and if your clients are in the rental business, they will be receiving a Schedule E. This is one of the most common reasons a client might receive a Schedule E, but there are others. Schedule E (Form 1040), Supplemental Income and Loss, is used for reporting residential rental income and expenses, as well as pass-through items from S corporations, partnerships, estates and trusts. Because this form has a few different components, it can be confusing to know what you need to complete for your client’s specific financial situation. With this course, you’ll gain a basic understanding of Schedule E and be able to confidently complete your client’s return.
Upon completion of this course, you will be able to:
- Identify passive loss limitations and exceptions
- Determine eligibility for the special $25,000 passive 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
This course includes an e-book and exam questions to help you earn CPE. CPE is issued after the exam is successfully completed.