Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Income — Rental and Schedules K-1

Out of Scope

Out of Scope Situations for VITA/TCE Programs

The following are out of scope for this lesson. While this list may not be all inclusive, it is provided for your awareness only.

  • Schedule K-1 items other than the six income items specifically identified in this lesson as within scope
  • Royalty income reported on Form 1099-MISC with associated expenses
  • Taxpayers who rent their property at less than fair rental value
  • Rental-related interest expenses other than mortgage interest
  • The actual expense method (auto and travel expense deductions)
  • Casualty loss
  • Completing Form 8582
  • Taxpayers who filed or need to file Form(s) 1099