Schedule E
Definition
An IRS form (supplement to Form 1040) used to report income or loss from rental real estate, royalties, partnerships, S corporations, estates, and trusts. Rental income and expenses are reported in Part I, while pass-through income from partnerships and S corporations (reported on K-1 forms) goes in Part II. Net income from Schedule E flows to your Form 1040 and is generally not subject to self-employment tax.
Example
You own a rental property that generates $24,000 in rent and has $18,000 in deductible expenses (mortgage interest, repairs, depreciation). You report the $6,000 net income on Schedule E.
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