How to Report a Schedule E Vacation Home
When you rent out your vacation property, you need to report this income as rental income on your taxes. If you rented your property for less than two weeks of the year, you may not need to file a Schedule E, however. Assuming your rental property was rented for more than two weeks, you can deduct most or all of your expenses to report your net profit or loss from this vacation rental. Before you begin locate all receipts, rental agreements and other bills associated with your rental property.
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Instructions
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Fill out your personal information on the first two lines of the Schedule E form. Add up the total money you received for renting your vacation home and enter this on lines 3 and 4.
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2
Add your expenses using the receipts and bills. Sample expenses the IRS allows you to deduct include legal fees, management fees, advertising, cleaning and utilities. Enter the expenses on lines 5 to 18 of Schedule E, then sum your expenses and put the total figure on line 19.
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3
Calculate your vacation home's depreciation using IRS Form 4562. Enter the depreciation amount on line 20.
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4
Add lines 19 and 20 and enter the combined amount on line 21.
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Subtract line 21 from line 3 and enter the result on line 22. This can be a positive or negative number and will represent your vacation home's profit or loss.
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Enter zero on line 23 assuming you have a profit, not a loss.
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Write the income from line 22 on line 24. Enter zero on line 25 assuming you have a profit, not a loss. Write the amount from line 22 on lines 25 and 26. This is your total vacation home profit that you are reporting on Schedule E.
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Tips & Warnings
Keep records of your profit and expenses throughout the year so you don't have to guess when it comes time to fill out Schedule E.
