J.K. Lasser's Your Income Tax 2014: For Preparing Your 2013 Tax Return

Chapter 9

Income From Real Estate Rentals and Royalties

9.1 Reporting Rental Real Estate Income and Expenses

9.2 Checklist of Rental Deductions

9.3 Distinguishing Between a Repair and an Improvement

9.4 Reporting Rents From a Multi-Unit Residence

9.5 Depreciation on Converting a Home to Rental Property

9.6 Renting a Residence to a Relative

9.7 Personal Use and Rental of a Residence During the Year

9.8 Counting Personal-Use Days and Rental Days for a Residence

9.9 Allocating Expenses of a Residence to Rental Days

9.10 Rentals Lacking Profit Motive

9.11 Reporting Royalty Income

9.12 Production Costs of Books and Creative Properties

9.13 Deducting the Cost of Patents or Copyrights

9.14 Intangible Drilling Costs

9.15 Depletion Deduction

9.16 Oil and Gas Percentage Depletion

Use Schedule E of Form 1040 to report real estate rental income and expenses. You must also file Form 4562 to claim depreciation deductions for buildings you placed in service in 2013.

Use Schedule C instead of Schedule E if you provide substantial services for the convenience of the tenants, such as maid service. That is, Schedule C is used to report payments received for the use and occupancy of rooms or other areas in a hotel, motel, boarding house, apartment, tourist home, or trailer court where services are provided primarily for the occupant.

If you rent out an apartment or room in the same building in which you live, you report the rent income less expenses allocated to the rental property (9.4).

The law ...