tax-aide rent and royalty income form 1040 – line 17 pub 4012 –page d-27 pub 4491 –part 3 –...
TRANSCRIPT
TAX-AIDE
TAX-AIDE
Rent and Royalty Income
Form 1040 – Line 17 Pub 4012 – Page D-27 Pub 4491 – Part 3 – Lesson 13
Entire Lesson
TAX-AIDE
Intake and Interview
● Look for K-1s, 1099-MISC with Rent and/or Royalty
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TAX-AIDE
Rent
● Rent income in-scope if Land OR Gas/oil lease Reported on a Form 1099-MISC Received from individual and not
reported on 1099-MISC
● No Expenses (property tax on Sch A)
Rent reported on a K-1 – Out-of-scope
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TAX-AIDE
Rents reported on 1099-MISC
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TAX-AIDE
Enter Rent/Royalties on Sch E
● From Form 1040, line 17, link to [Sch E Pg 1] Select link Select [New] Select [Sch E Pg 1 – Rent & Royalty Income]
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For Rent, enter name and address on line A, enter 5 for type
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Link to 1099-MISC
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TaxWise 1099-MISC Rent
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Dropdown Box
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Schedule E in TaxWise
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Enter Royalty
● Royalties from a gas/oil lease or similar in-scope if reported on K-1 or 1099-MISC
● On Sch E, Pg 1 enter name and address; on line C, enter 6 as type
Royalty from own personal services is business income on Sch C (such as author’s or actor’s royalty)
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For Royalty, enter name and address on line C, enter 6 for type
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For K-1 enter amount in 4 C; For 1099-MISC, link from 4C and complete 1099-MISC
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Sch E, pg 1 Transfers to 1040 line 17
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Quality Review
● Are rent and royalty entries in scope
● Has information been properly entered on Sch E
● Check for proper transfer of Sch E, pg 1 amount to 1040 line 17
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TAX-AIDE
Any Questions/Comments?
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