Table Of Contents

1. What IRS Schedule E is Used For
2. How IRS Schedule E Interacts With the Rest of your Return
3. Wait, What? I can't Deduct my Passive Losses?
4. Determining Property Basis and Depreciation
5. The Property Basis
6. The Loan Cost Basis
7. Currently Deductible Expenses
8. Reporting Rental Property on IRS Schedule E
9. Income and Expenses to Report on IRS Schedule E
10. Adding it All Up
11. Reporting Car Expenses and What You Need to Know
12. Putting it All Together

Whether you’re a brand new investor trying to do it yourself or you have a million dollar portfolio and have a team of professionals, it’s always a good idea to have foundational knowledge of each aspect of your business. I developed this comprehensive guide to allow real estate investors on every level better understand IRS Schedule E.

While real estate tax can be complex, this guide is written for investors of all skill levels. I could have made it cumbersome and technical, but then my audience would be other CPAs which isn’t the intent of this article, much less The Real Estate CPA™ as a whole.

Let’s begin by highlighting all the great knowledge you’ll walk away with after you get through this article:

• What IRS Schedule E is and how it interacts with your tax return
• Why we report rental property on IRS Schedule E
• Calculating the basis and depreciation of your rental property
• A walk through of IRS Schedule E