Rental Income & Royalties

This Rental Income Belongs To:

Select from:

• Taxpayer
• Spouse (when applicable)
• Qualified Joint Venture

Property Information:

Here is where you tell the system what "Type of Property" this is:

Click within the box to expand the drop-down list. Choose from:

• Royalties
• Single-Family Home
• Multi-Family Home
• Other

*When "Other" is selected, a description of property type is required.

Investment at Risk:

If you do not qualify to select "Investment at Risk" you can not use this system.

Active Participation:

If you did not Materially Participate (can not select "Yes"), you can not use this system.

Please see IRS Schedule E Instructions for specific details on Investment at Risk & Materially Participation. There are special rules for the purpose of rental income.

Property sold in (current tax year):

Check the box if this property was sold during the tax year.

Fair Rental Days:

Enter the number of days this property was used as a rental in (current tax year).

Personal Use Days:

Enter the number of days this property was not being used as a rental (personal use days).

**Fair Rental Days and Personal Use Days must total 365 (366 in leap years) between the two.

Property Address:

• Enter the physical address the property is located.
• To enter a foreign address, click on the blue sentence (link) "To enter a foreign address, click here".

• Form 1099-MISCs that have been entered and not already assigned to Schedule C, Schedule F, or as Other Income (Form 1040, Line 21) will be displayed.

• Check the box next to any applicable Form 1099-MISCs listed.

• DO NOT enter the amount of any selected Form 1099-MISCs into the Income field. The system does this automatically. When the amount of a Form 1099-MISC selected is also entered into the income field, the amount will be counted twice.

Form 1099-MISC that have a Foreign Payer Address will enter the income directly into Income field.

Auto and Travel:

If you have checked the box to report Car and Truck expenses, do not enter include the expense s in "Auto and Travel" and "Form 4562".

If you have personal car and truck expenses to report, please check this box.

Car and Truck expenses will only carry over to this activity when this box is checked.

Mortgage Interest:

• Reported on Form 1098
• Not Reported on Form 1098

-Enter only the Mortgage Interest that was paid when this property was a rental.

-DO NOT enter Mortgage Interest that was paid when this property was not a rental. Personal Mortgage Interest is entered within Schedule A.

Form 1098 Explanation:

Provide a explanation anytime:

• The amount of Mortgage Interest entered is more than the amount of Form 1098.
• The Name and Address on the Form 1098 is someone other than the taxpayer (or spouse).

Other Expenses:

There is a limit of (3) Other Expenses that can be entered. If you need more than (3) Other Expenses, and can not find the applicable field to enter them, you will not be able to use this system.

Depreciation & Amortization:

• Check the box to list depreciable property assets or amortization.
• The Asset Manager page will generate once you select "Save & Continue"
• Only enter assets/property that belong to this activity.

Depreciation & Amortization Override:

• Only enter an amount into the Depreciation or Amortization Override field if Form 4562 is not required.
• The system will use the Override amount.
• DO NOT enter 0. Entering a zero into the override field will carryover a 0/zero Depreciation or Amortization Deduction.