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

Schedules K-1 and Rental Income Workout

Rental Income and Expenses

Skills Warm Up: Rental Expenses

Question 1 of 3

John Princeton was transferred overseas and began renting out his residence on September 1 of the tax year. How much of his mortgage interest and property taxes should you report on his Schedule E?

All of it
Eight-twelfths (2/3 or 67%)
Four-twelfths (1/3 or 33%)
None of it