How to Report Land Rent on Schedule E
Schedule E allows taxpayers to report profit and loss from rental land. Types of rental income reported on Schedule E can include rental real estate, rental farm land, estates, partnerships and trusts. To fill out Schedule E, you will need to have receipts from any maintenance work, cleaning, legal fees or other property-related expenses.
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Instructions
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1
Fill in your name, social security number and type and address of your rental land on the top of Schedule E.
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2
List the rents and royalties received from your land on lines 3 and 4.
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3
Categorize your expenses on lines 5 through 18. If you incurred cleaning expenses, maintenance expenses, advertising costs, repairs or other expenses, list the dollar amount next to the expense category. Round up to the nearest whole number and do not use cents.
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4
Add all of your expenses and write this sum on line 19.
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5
Calculate your depreciation and enter the sum on line 20. Use IRS form 4562 to calculate your depreciation.
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6
Add lines 19 and 20 and enter this sum on line 21.
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7
Subtract your expenses from your rental income (from line 3) to arrive at your true income or loss from land rent. Enter this positive value on line 22.
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8
Enter zero for line 23. Since you received land rent, you do not have a loss or negative number.
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9
Re-enter the amount from line 22 on line 24.
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10
Enter zero on line 25 to show zero losses.
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11
Re-enter the amount from lines 22 and 24 on line 26. This is the amount of land rent you will be reporting on your Schedule E.
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12
Report this amount in the appropriate box on your 1040 or 1040NR tax form.
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