Schedule E: Supplemental Income and Loss (2024)

Who files this form

Use Schedule E for tax year 2024 to report income or loss from:

• Rental real estate and royalties.
• Partnerships and S corporations.
• Estates and trusts.
• Residual interests in real estate mortgage investment conduits (REMICs).

Partners and S corporation shareholders use Part II to report their share of income, even if they did not receive it, or loss.

Some income belongs elsewhere. Use Schedule C for a business renting personal property, rentals where you provide significant services such as maid service, or royalties from your business as a self-employed writer, inventor, or artist.

Individuals who receive farm rent based on crops or livestock produced by the tenant, without materially participating in the farm's management or operation, report it on Form 4835. The net amount goes on Schedule E, line 40.

When it's due

The supplied text does not state a filing deadline for the 2024 Schedule E. It does give these dates for statements covering tax year 2024:

• January 31, 2025: If you received $10 or more in royalties during 2024, the payer should send you Form 1099-MISC or a similar statement by this date.
• January 31, 2025: If you paid $600 or more in mortgage interest during 2024, the recipient should send you Form 1098 or a similar statement by this date.

These are statement-sending dates, not Schedule E filing deadlines.

What you'll need

Keep records supporting the income, expenses, and other items you report. Depending on your activities, gather:

• Rental property information: Addresses, property types, fair rental days, personal-use days, and records of rent and expenses.
• Royalty statements: Form 1099-MISC or similar statements showing royalties received.
• Mortgage and loan records: Form 1098 or similar statements, plus records showing how loan proceeds were used.
• Schedules K-1: For income or loss from partnerships, S corporations, estates, or trusts. Keep partnership and S corporation Schedules K-1 for your records; do not attach them to your return.
• Schedules Q: For REMIC residual interests.
• Other forms, if applicable: Form 4835 for farm rental income, Form 4562 for depreciation or auto expense reporting, Form 6198 for at-risk loss limits, Form 8582 for passive activity loss limits, and Form 7203 for S corporation stock and debt basis.

How to file

Attach Schedule E to Form 1040, 1040-SR, 1040-NR, or 1041. The supplied text does not give a mailing address or e-filing directions.

You may attach your own schedules for these income sources, using the same format as Schedule E. Enter total income and total loss separately for each part, and put loss figures in parentheses.

If you have more than three rental or royalty properties, attach as many Schedules E as needed. Answer questions A and B and complete lines 23a through 26 on only one Schedule E, using combined totals for all properties. If you also use page 2, use that same Schedule E.

For instructions and the latest information, visit IRS.gov/ScheduleE.

Common mistakes

• Deducting personal-use expenses as rental expenses. Expenses for personal-use days do not qualify as rental expenses. Allocate expenses based on personal-use days compared with total use.
• Combining the standard mileage rate with actual vehicle costs. If you use the standard mileage rate, you cannot also deduct rental or lease payments, depreciation, or actual auto expenses.
• Overlooking Schedule K-1 differences. The IRS compares amounts on your return with Schedules K-1. If you answer “Yes” on line 27, follow its instructions for prior-year losses and unreimbursed partnership expenses to avoid a possible additional-tax notice.
• Missing an S corporation basis computation. If you report a loss, receive a distribution, dispose of stock, or receive a loan repayment from an S corporation, check line 28, column (e), and attach the required basis computation.
• Applying an excess business loss limit directly on Schedule E. The instructions remind you to use Form 461. The disallowed amount is included as income on Schedule 1, line 8p, rather than reflected on Schedule E lines 26, 32, 37, or 39.

Questions people ask

What if I own only part of a rental property?

Report only your share of the property's income and expenses on Schedule E.

Do I report rent paid in services or property instead of money?

Yes. Report the fair market value of the services or property as rental income on line 3.

What if I rented out a home for fewer than 15 days in 2024?

If you used the dwelling as a home and rented it for fewer than 15 days in 2024, do not report the rental income or deduct rental expenses. You used it as a home if personal use exceeded the greater of 14 days or 10% of the days it was rented at a fair rental price.

Can I deduct the full cost of property improvements as repairs?

No. Repair and maintenance costs, such as fixing a broken lock or painting a room, can be deductible. Improvements, such as replacing an entire HVAC system, generally must be capitalized and depreciated rather than deducted in full when paid or incurred.

Can I deduct every loss shown on Schedule E?

Not necessarily. Basis, at-risk, passive activity, and excess business loss rules may reduce or disallow a loss. Which rules apply depends on the activity and your circumstances.

Official sources

• https://www.irs.gov/pub/irs-prior/f1040se--2024.pdf
• https://www.irs.gov/pub/irs-prior/i1040se--2024.pdf