Schedules D & E: Schedules D & E (Form 40) (2025)
Alabama · Alabama DOR · Used for tax years 2025
Alabama Schedules D and E attach to Form 40 for 2025. Schedule D reports net profit or loss from sales of real estate, stocks, bonds, and other property. Schedule E reports rental real estate and royalty income and expenses, plus income from partnerships, S corporations, estates,
Who files this form
These schedules accompany Alabama Form 40 for tax year 2025:
- Schedule D reports net profit or loss from sales of real estate, stocks, bonds, and other property.
- Schedule E, Part I reports income or loss from rental real estate and royalties.
- Schedule E, Part II reports income from partnerships, S corporations, estates, and trusts.
What you'll need
Have the following information ready for the parts you complete:
- Identification: Your name as shown on Form 40 and your Social Security number.
- Property sales: Kind of property, dates acquired and sold, amount received, depreciation allowable since acquisition, cost or other basis, and subsequent improvements.
- Rentals and royalties: Kind and location of each rental property, personal-use information, rents or royalties received, expenses, and depreciation or depletion.
- Partnerships, S corporations, estates, and trusts: Name, address, employer identification number, entity type, and income amount.
How to file
Attach the schedules to Form 40.
- Enter Schedule D's total net profit or loss on Form 40, page 2, Part I, line 3.
- On Schedule E, combine lines 23 and 24 on line 25. Enter that total on Form 40, page 2, Part I, line 5.
The provided form does not list a mailing address or e-filing instructions.
Common mistakes
- Reporting certain personal-property rental businesses on Schedule E: The form says that if you operate under a Federal Employer Identification Number, report income and expenses from your business of renting personal property on Schedule C or C-EZ.
- Forgetting the attachment: Both schedules remind you to attach them to Form 40.
- Skipping the instructions: The form directs you to consult the instructions for Schedules D and E. Those instructions are not included in the provided text.
Questions people ask
Where do I report profit or loss from selling stocks or real estate?
Use Schedule D. Enter its total net profit or loss on Form 40, page 2, Part I, line 3.
What personal use of a rental property does Schedule E ask about?
For each listed rental property, line 2 asks whether you or your family used it for personal purposes during the tax year for more than the greater of 14 days or 10% of the total days rented at fair rental value.
How do I calculate rental or royalty income or loss?
Add expenses on lines 5 through 18 and enter the result on line 19. Add depreciation or depletion from line 20 to get total expenses on line 21. Subtract line 21 from rents on line 3 or royalties on line 4, and enter the result on line 22.
Where does the Schedule E total go?
Combine rental real estate and royalty income or loss on line 23 with the income on line 24. Enter the result on line 25 and on Form 40, page 2, Part I, line 5.