Schedule E of Form 1040 or 1040-SR

Author: Barbara Weltman

Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2028 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card

This course focuses on Schedule E of Form 1040, which is used to report supplemental income.

Publication Date: June 2025

Topics Covered

• Schedule E Attached to Return
• Other Forms and Schedules
• Rental Real Estate
• Income or Loss from Rental Real Estate and Royalties
• Travel and Cleaning Expenses
• Insurance and Commissions
• Legal and Professional Fees
• Management fees and Interest Expenses
• Bonus Depreciation
• Other Expenses and Total Expenses
• Overview of Parts II and III of Schedule E
• Overview of Passive Activity Loss Limitation (PAL)
• Part IV of Schedule E
• Income or Loss from REMICs
• Part V of Schedule E

Learning Objectives

• Recognize how rental income and expenses are treated
• Determine whether to file Schedule C or Schedule E to report rental income and expenses
• Recognize how royalty income and expenses are treated
• Identify factors required to meet the safe harbor test to treat rental real estate as a trade or business solely for the purpose of the qualified business income deduction
• Describe conditions of eligibility to qualify as a "small taxpayer" under the safe harbor election to deduct certain improvement costs
• Identify correct statements about unreimbursed expenses for partners and S corporation shareholders
• Describe possible limitations on deducting a loss passed through a partner, S corporation shareholder, or beneficiary of a trust or estate
• Describe how the at-risk and passive activity loss rules apply to partners and S corporation shareholders
• Identify other forms and schedules filed in relation to Schedule E

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (1 hour)

Program Prerequisites
none

Advance Preparation
None