12 Questions
What form should rental income be reported on?
Schedule E, Supplemental Income and Loss, of Form 1040
What information is needed to report rental income?
Name and address of the property, amount of rent received, amount of expenses incurred, and amount of depreciation taken
What is the recovery period for residential rental property?
27.5 years
What is the recovery period for commercial real property?
39 years
What type of income is rental income considered?
Ordinary income
What deductions can be made from rental income?
Advertising, cleaning and maintenance, utilities, taxes, interest, and commissions for the collection of rent, travel, and transportation
Can the cost of fire and liability insurance be deducted from rental income?
Yes, if the premium was paid in the year and is for more than 12 months in advance
Can land be depreciated?
No, land cannot be depreciated
Can the cost of repairs be deducted from rental income?
Yes, the cost of repairs can be deducted
Can the cost of improvements be deducted from rental income in the current year?
No, the cost of improvements is normally not deducted immediately
Can a loss from a rental property be deducted from other income?
Yes, a loss from a rental property may be able to be deducted from other income
Is a deposit considered rental income?
No, a deposit is not considered rental income
Study Notes
"Maximize Your Rental Income: Test Your Knowledge on Tax Reporting and Expenses!" Take this quiz to see how much you know about reporting rental income on your tax return. Learn about the necessary information you need to provide and how to calculate expenses incurred. Put your knowledge to the test and become a pro at maximizing your rental income!
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