Schedule E, Supplemental Income and Loss

This schedule is used for reporting income or loss from rental real estate, royalties, partnerships, S corporations, estates, trusts, and residual interests in Real Estate Mortgage Investment Conduits (REMICs). These are forms of “‘passive income,”’ meaning income from business activities in which you don’t materially participate.

*We do not support Schedule E, Supplemental Income and Loss in our filing flow.

  • Part I - Income or loss from rental real estate and royalties: If you rent out property like a house, a condo, or an apartment, or if you receive royalties, you report that income here. You also get to deduct associated expenses, such as mortgage interest, property tax, operating expenses, depreciation, and repairs.

  • Part II - Income or loss from partnerships and S corporations: If you're a partner in a business partnership or a shareholder in an S corporation, you'll receive a Schedule K-1 that shows your share of the business's income or loss. Report that in this section.

  • Part III - Income or loss from estates and trusts: Beneficiaries of an estate or trust might receive a Schedule K-1 that reports their share of the income or loss. Report that here.

  • Part IV - Income or loss from real estate mortgage investment conduits (REMICs): "Residual interest holder" in a REMIC report income or loss from that interest here.

  • Part V - Summary: Summarizes the income or losses reported in the earlier sections. This summarized amount is then reported on your Form 1040.

  • Page 2: Used when you have income or loss from multiple rental properties, partnerships, S corporations, estates, trusts, or REMICs. Each property or entity is reported in a separate column.