Form detail
IRS Form Schedule E (Form 1040)
Supplemental Income and Loss
Country
United States
Revision year
2024
Methods
paper, efile
Updated
2026-05-20
Supplemental Income and Loss
Schedule used to report income or loss from rental real estate, royalties, partnerships, S corporations, estates, trusts, and residual interests in REMICs.
Who must file: Individuals who received rental real estate or royalty income, are partners or S corporation shareholders receiving K-1s, or are beneficiaries of estates and trusts.
Practical overview
The passive activity loss rules under IRC § 469, the real estate professional exception, and the at-risk rules under IRC § 465 are the most commonly misapplied provisions on Schedule E. K-1 box codes from partnerships and S corporations carry to many different lines of the 1040, and self-rental rules can recharacterize otherwise-passive income.
Practical steps
- Part I: list each rental property with type code, fair rental days, and personal use days.
- Compute and apply passive activity loss limits using Form 8582.
- Part II: report K-1 income from partnerships and S corporations and reconcile basis and at-risk limits.
- Part III: report income from estates and trusts using K-1 (Form 1041) box amounts.
- Aggregate totals to Form 1040, Schedule 1.
Due-date notes
File with Form 1040 by the individual income tax return due date.
Timing: April 15
Extension reference: Form 4868
Penalty snapshot
Standard Form 1040 penalties for failure to file or pay; accuracy-related penalties for misapplied passive activity rules or unreported K-1 income.
Related citations
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Cited by
Primary sources
- About Schedule E (Form 1040)Verified 2026-05-20
- Instructions for Schedule EVerified 2026-05-20
Important disclaimer
This library is for general tax education only. Always verify filing obligations, due dates, and tax consequences against the cited primary source or with a qualified tax professional.