This lesson covers the reporting of:
To determine if a taxpayer needs to file Schedule E, use the interview techniques and tools discussed in the Screening and Interviewing lesson. Although the intake and interview sheet provides a line to list income from rental property, it does not provide a place to list income from Schedules K-1. It is important to ensure that all income is accurately reported on the return. Ask taxpayers if they rented out their home or other property during the tax year or if they received a Schedule K-1 (Form 1041, Form 1065, or Form 1120S) from an estate, trust, partnership, or S corporation.
This lesson does not apply to taxpayers who are in the business of renting properties.