Rental Income

If you receive income from the rental of residential or commercial real property (real estate), you use Schedule E, page 1, to report the income and the related expenses. Be advised that, under some circumstances, a net loss from a rental real estate activity may be restricted under the passive activity loss rules. Refer to the instructions for Schedule E and Form 8582.

If you are receiving rental income from a farm property, and the income is based on the production of the farm, you report that activity on Form 4835.

If you receive income from renting personal property, this may be considered a business (Schedule C) if you engage in the activity with regularity and have a profit motive, or if you provide services in connection with the property rental. If you neither have a profit motive/regular activity or provide services, the rental income from personal property would be reported as Miscellaneous Income on Form 1040; see the instructions for that line.

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