Reporting Rental Income and Expenses
If you rent out buildings, rooms or apartments, and provide only heat and light, trash
collection, etc. you normally report your rental income and expenses in Part I of Schedule E. However, do not use
Schedule E to report a not for profit activity.
If you provide significant services that are primarily for your tenant's convenience such as
regular cleaning, changing the linens or main service, you report your rental income and expenses on Schedule
Reporting rental income and expenses on Schedule E
Use Part I of Schedule E to report your rental income and expenses. If you have more than three
rental properties, complete and attach as many Schedule E as are needed to list the properties.
Complete lines 1 and 2 for each property. However, fill in the totals column on only one
Schedule E. The figures in the totals column of that Schedule E should be the combined totals of all Schedule
On page 1, line 20 of Schedule E, enter the depreciation you are claiming.
IRS form 4562
You must complete and attach a Form 4562 for rental activities only if you are claiming:
depreciation on property placed in service in the current tax year
depreciation on any property that is listed property, such as a car or certain computer equipment
any car expenses (actual or the standard mileage rate)
Otherwise, figure depreciation on your own worksheet which does not have to be attached to your