Schedule E – Supplemental Income And Loss

This intermediate course focuses on Schedule E of Form 1040, which is used to report supplemental income. It includes how to report income or loss from rental real estate, royalties, partnerships, S corporations, estates, trusts, and residual interests in real estate mortgage investment conduits (REMICs).

At the end of this course, the student will be able to do the following:

• Calculate Income or Loss from Rental Real Estate and Royalties

• Calculate Income or Loss from Partnerships, S Corporations, Estates, and Trusts

• Calculate Income or Loss from REMICs and Other Issues

​Learning Objectives

• Identify factors required to meet the safe harbor test to treat rental real estate as a trade or business solely for the purpose of the qualified business income deduction

• Recognize how rental income is treated

• Describe conditions of eligibility to qualify as a "small taxpayer" under the safe harbor election to deduct certain improvement costs

• Describe the basis limitation for S corporation shareholders deducting amounts passed through to them

• Identify correct statements about unreimbursed expenses for partners and S corporation shareholders

• Identify how an owner of rental property can treat each of the following improvements as a Section 179 deduction

• Describe possible limitations on deducting the loss passed through a partner