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10.

TAX REPORTING FOR ANNUAL INCOME AND EXPENSE

As an investor in real estate, your tax-reporting requirements are more complex than for most other types of investments. For example, if you invest only in stocks and mutual funds, you report interest and dividends on Schedule B and capital gains on Schedule D of Form 1040. Beyond that, there are usually no special schedules to file.

For real estate transactions, you must also report the income and expense on Schedule E, along with depreciation, passive loss limitations, and like-kind exchanges on specialized schedules. This chapter provides blank copies and examples for each of the applicable forms. ...

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