J.K. Lasser's Your Income Tax 2023, 2nd Edition

CHAPTER 9Income From Real Estate Rentals and Royalties

9.1	Reporting Rental Real Estate Income and Expenses	265
9.2	Checklist of Rental Deductions	266
9.3	Distinguishing Between a Repair and an Improvement	267
9.4	Reporting Rents From a Multi‐Unit Residence	269
9.5	Depreciation on Converting a Home to Rental Property	270
9.6	Renting a Residence to a Relative	272
9.7	Personal Use and Rental of a Residence During the Year	272
9.8	Counting Personal‐Use Days and Rental Days for a Residence	274
9.9	Allocating Expenses of a Residence to Rental Days	275
9.10	IRS May Challenge Loss Claimed on Temporary Rental of Residence Before Sale	277
9.11	Reporting Royalty Income	278
9.12	Production Costs of Books and Creative Properties	279
9.13	Deducting the Cost of Patents or Copyrights	279
9.14	Intangible Drilling Costs	279
9.15	Depletion Deduction	280
9.16	Oil and Gas Percentage Depletion	281
9.17	Qualified Business Income Deduction for Real Estate Activities	282

Use Schedule E of Form 1040 to report real estate rental income and expenses. The same form is used if you file Form 1040‐SR. You must also file Form 4562 with your 2022 return to claim depreciation deductions for buildings you placed in service during the year.

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 ...