Ernst & Young Tax Guide 2018, 33rd Edition

Chapter 9 Rental income and expenses

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1. Rental Income
2. Rental Expenses
3. Repairs and Improvements
   1. Other Expenses
4. Property Changed To Rental Use
5. Renting Part of Property
6. Not Rented for Profit
7. Personal Use of Dwelling Unit (Including Vacation Home)
   1. Dividing Expenses
   2. Dwelling Unit Used as a Home
   3. Reporting Income and Deductions
8. Tangible Property Regulations
9. Depreciation
10. Limits on Rental Losses
    1. At-Risk Rules
    2. Passive Activity Limits
11. How To Report Rental Income and Expenses
    1. Schedule E (Form 1040)

Note

IRS Publication 17 (Your Federal Income Tax) has been updated by Ernst & Young LLP for 2017. Dates and dollar amounts shown are for 2017. Underlined type is used to indicate where IRS text has been updated. Places where text has been removed are indicated by the sentence: Text intentionally omitted.

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Ernst & Young LLP will update the EY Tax Guide 2018 website with relevant taxpayer information as it becomes available. You can also sign up for email alerts to let you know when changes have been made.

Introduction

Rent is the income received for allowing another person to use property that you own. This income is customarily received in cash. If, in lieu of paying all or part of the rent in cash, a tenant provides you with certain services, the value of those services is rental income to you.

You may deduct expenses incurred to repair or to maintain your rental property. However, certain other expenses may not ...