SCHEDULE E (Form 1040) Department of the Treasury Internal Revenue Service (99) Supplemental Income and Loss 2018 (From rental real estate, royalties, partnerships, S corporations, estates, trusts, REMICs, etc.) Attach to Form 1040, 1040NR, or Form 1041. to www.irs.gov/ScheduleE for instructions and the latest information. ▶ ▶ Go Name(s) shown on return Part I OMB No. 1545-0074 Attachment Sequence No. 13 Your social security number Income or Loss From Rental Real Estate and Royalties Note: If you are in the business of renting personal property, use Schedule C or C-EZ (see instructions). If you are an individual, report farm rental income or loss from Form 4835 on page 2, line 40. A Did you make any payments in 2018 that would require you to file Form(s) 1099? (see instructions) . . . . . Yes No B If “Yes,” did you or will you file required Forms 1099? . . . . . . . . . . . . . . . . . . . Yes No 1a Physical address of each property (street, city, state, ZIP code) A B C Fair Rental Personal Use 2 For each rental real estate property listed 1b Type of Property QJV above, report the number of fair rental and Days Days (from list below) personal use days. Check the QJV box A A only if you meet the requirements to file as a qualified joint venture. See instructions. B B C C Type of Property: 3 Vacation/Short-Term Rental 5 Land 7 Self-Rental 1 Single Family Residence 2 Multi-Family Residence 4 Commercial 6 Royalties 8 Other (describe) Income: Properties: A B C 3 Rents received . . . . . . . . . . . . . 3 4 4 Royalties received . . . . . . . . . . . . Expenses: 5 Advertising . . . . . . . . . . . . . . 5 6 Auto and travel (see instructions) . . . . . . . 6 7 Cleaning and maintenance . . . . . . . . . 7 8 Commissions. . . . . . . . . . . . . . 8 9 Insurance . . . . . . . . . . . . . . . 9 10 Legal and other professional fees . . . . . . . 10 11 Management fees . . . . . . . . . . . . 11 12 Mortgage interest paid to banks, etc. (see instructions) 12 13 Other interest. . . . . . . . . . . . . . 13 14 Repairs. . . . . . . . . . . . . . . . 14 15 Supplies . . . . . . . . . . . . . . . 15 16 Taxes . . . . . . . . . . . . . . . . 16 17 Utilities . . . . . . . . . . . . . . . . 17 18 Depreciation expense or depletion . . . . . . 18 Other (list) ▶ 19 19 20 Total expenses. Add lines 5 through 19 . . . . . 20 Subtract line 20 from line 3 (rents) and/or 4 (royalties). If result is a (loss), see instructions to find out if you must file Form 6198 . . . . . . . . . . . . . 21 Deductible rental real estate loss after limitation, if any, 22 )( on Form 8582 (see instructions) . . . . . . . 22 ( 23a Total of all amounts reported on line 3 for all rental properties . . . . 23a b Total of all amounts reported on line 4 for all royalty properties . . . . 23b c Total of all amounts reported on line 12 for all properties . . . . . . 23c d Total of all amounts reported on line 18 for all properties . . . . . . 23d e Total of all amounts reported on line 20 for all properties . . . . . . 23e 24 Income. Add positive amounts shown on line 21. Do not include any losses . . . . . . . 25 Losses. Add royalty losses from line 21 and rental real estate losses from line 22. Enter total losses here . 21 26 Total rental real estate and royalty income or (loss). Combine lines 24 and 25. Enter the result here. If Parts II, III, IV, and line 40 on page 2 do not apply to you, also enter this amount on Schedule 1 (Form 1040), line 17, or Form 1040NR, line 18. Otherwise, include this amount in the total on line 41 on page 2 . . . . . . . . . . . . . . . . . . . . . . . . . For Paperwork Reduction Act Notice, see the separate instructions. Cat. No. 11344L )( ) 24 25 ( ) 26 Schedule E (Form 1040) 2018 Schedule E (Form 1040) 2018 Attachment Sequence No. 13 Page 2 Your social security number Name(s) shown on return. Do not enter name and social security number if shown on other side. Caution: The IRS compares amounts reported on your tax return with amounts shown on Schedule(s) K-1. Part II Income or Loss From Partnerships and S Corporations — Note: If you report a loss, receive a distribution, dispose of stock, or receive a loan repayment from an S corporation, you must check the box in column (e) on line 28 and attach the required basis computation. If you report a loss from an at-risk activity for which any amount is not at risk, you must check the box in column (f) on line 28 and attach Form 6198 (see instructions). 27 Are you reporting any loss not allowed in a prior year due to the at-risk, excess farm loss, or basis limitations, a prior year unallowed loss from a passive activity (if that loss was not reported on Form 8582), or unreimbursed partnership expenses? If you answered “Yes,” see instructions before completing this section . . . . . . . . . . . . Yes No 28 (b) Enter P for partnership; S for S corporation (a) Name A B C D (i) Nonpassive loss from Schedule K-1 (j) Section 179 expense deduction from Form 4562 . . . . . . . . . . . . A B (c) Passive deduction or loss allowed (attach Form 8582 if required) Nonpassive Income and Loss (d) Passive income from Schedule K-1 Totals Totals Add columns (d) and (f) of line 34a . . . . . . . . . . . Add columns (c) and (e) of line 34b . . . . . . . . . . . Total estate and trust income or (loss). Combine lines 35 and 36 . (e) Deduction or loss from Schedule K-1 . . . . . . . . . . . . . . . . . . . . . . . . (f) Other income from Schedule K-1 . . . (b) Employer identification number (c) Excess inclusion from Schedules Q, line 2c (see instructions) (d) Taxable income (net loss) from Schedules Q, line 1b Combine columns (d) and (e) only. Enter the result here and include in the total on line 41 below ) (e) Income from Schedules Q, line 3b 39 Summary 40 41 Net farm rental income or (loss) from Form 4835. Also, complete line 42 below . . . . . . Total income or (loss). Combine lines 26, 32, 37, 39, and 40. Enter the result here and on Schedule 1 (Form 1040), line 17, or Form 1040NR, line 18 ▶ 42 Reconciliation of farming and fishing income. Enter your gross farming and fishing income reported on Form 4835, line 7; Schedule K-1 (Form 1065), box 14, code B; Schedule K-1 (Form 1120S), box 17, code AC; and Schedule K-1 (Form 1041), box 14, code F (see instructions) . 42 Reconciliation for real estate professionals. If you were a real estate professional (see instructions), enter the net income or (loss) you reported anywhere on Form 1040 or Form 1040NR from all rental real estate activities in which you materially participated under the passive activity loss rules . . 43 43 35 36 ( 37 Income or Loss From Real Estate Mortgage Investment Conduits (REMICs)—Residual Holder (a) Name Part V ) (b) Employer identification number Passive Income and Loss 38 (k) Nonpassive income from Schedule K-1 30 31 ( 32 (a) Name Part IV (f) Check if any amount is not at risk Income or Loss From Estates and Trusts 33 39 (e) Check if basis computation is required Nonpassive Income and Loss (h) Passive income from Schedule K-1 Totals Totals Add columns (h) and (k) of line 29a. . . . . . . . . . . . . . . . . Add columns (g), (i), and (j) of line 29b. . . . . . . . . . . . . . . . Total partnership and S corporation income or (loss). Combine lines 30 and 31 Part III A B 34a b 35 36 37 (d) Employer identification number Passive Income and Loss (g) Passive loss allowed (attach Form 8582 if required) A B C D 29a b 30 31 32 (c) Check if foreign partnership 40 41 Schedule E (Form 1040) 2018 ACT405 – Portfolio Project Case 1 Comprehensive Tax Problem – Option 1 Taxpayer Information Name: John Washington Address: 3450 Green St. Miami, FL 54321 DOB: 5/5/1960 Filing Status: Married SSN: 434-20-2020 Occupation: Engineer Name: Debra Washington Address: 3450 Green St. Miami, FL 54321 DOB: 7/7/1962 Filing Status: Married SSN: 411-21-4568 Occupation: Teacher INCOME INFORMATION: Wages and Compensation The following information is taken from John Washington’s 2017 Form W-2 Wage and Tax Statement: Box 1 – Wages, tips, and other compensation Box 2 – Federal Withholding Box 17 – State Income Tax Withholding 80,000 12,500 2,000 The following information is taken from Debra Washington’s 2017 Form W-2 Wage and Tax Statement: Box 1 – Wages, tips, and other compensation Box 2 – Federal Withholding Box 17 – State Income Tax Withholding 42,000 3,500 750 Interest and Dividends John had interest income from a savings account from Everest Bank of $500.00 Debra had dividend income of $550 from Blue Co. stock. Capital Gains John had the following stock transactions in 2017: He sold 1,000 shares of Apex Co. for $ 12,000 on June 7, 2017, which he purchased on April 1, 2017 for 25,000 Rental Real Estate The couple owns a rent house which he purchased on July 1, 2014. The income and expenses of the rental real estate unit are as follows: Rental income Property taxes Depreciation Repairs and Maintenance Insurance $12,000 $1,500 $1,000 $750 $2,000 Other Transactions in 2017 1. Debra had educator expenses in 2017 of $450.00 2. John had gambling winnings of $1,000. 3. John was the beneficiary of his mother’s life insurance policy. His mother died in 2017 and he received $50,000 under this policy. 4. Debra paid $700 in student loan interest.
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