Home Page link  

Schedule E required - income from renting room ?

  
Groups | Search | About
User Password
Register Now! Lost Password?

Taxes General Forum - Tax professionals meeting place and answers to queries. (Moderated)

 Post an article  get this group's latest topics as an RSS feed add this group's latest topics to your My MSN content add this group's latest topics to your My Yahoo content  add this group's latest topics to your Google content  YahooMyWeb Yahoo!  Google Google  Windows Live Favorites Windows Live  del.icio.us del.icio.us  digg digg  Add to Netscape Netscape
Subject Author Date
Schedule E required - income from renting room ? seaweedsl 03-07-2008
Posted by Tom Russ on March 10, 2008, 9:23 pm
Please log in for more thread options
>
> > You must have misinterpreted something.  The only year that can currently be
> >e-filed is 2007.  All others must be filed on paper.
>
> http://www.qcktax.com/file_prior_year_taxes.php
>
> Quote:   "TaxBrain  is the only IRS authorized online Tax company that
> allows you to prepare AND FILE your prior year return ONLINE." (my
> emphasis)

Hmmm. But does ONLINE necessarily mean e-Filing?

Could they allow you to prepare the return on-line and then THEY print
a paper copy and mail it? I wonder if there would be a signature
issue?

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by seaweedsl on March 11, 2008, 11:29 am
Please log in for more thread options
> > Quote: "TaxBrain is the only IRS authorized online Tax company that
> > allows you to prepare AND FILE your prior year return ONLINE." (my
> > emphasis)
>
> Hmmm. But does ONLINE necessarily mean e-Filing?
>
> Could they allow you to prepare the return on-line and then THEY print
> a paper copy and mail it? I wonder if there would be a signature
> issue?
>

Exactly what I was thinking. They have a work-around. Or else it's
another program that's not called e-filing, so is outside the e-filing
guidelines ?

Anyway, returning to the original topic and my original question:

I am not in the business of real estate, nor rental properties, I
simply have somebody renting a room from me.

Reading the IRS instructions I see this:

IF YOU ARE NOT IN THE BUSINESS OF RENTING OUT PROPERTY THEN ON 1040
LINE 21- LIST THE TYPE AND AMOUNT OF INCOME ON THE DOTTED LINE

Can I do it this way or MUST I use a schedule E?

Thanks
Steve

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by dpb on March 11, 2008, 1:33 pm
Please log in for more thread options
seaweedsl wrote:
...

> I am not in the business of real estate, nor rental properties, I
> simply have somebody renting a room from me.
>
> Reading the IRS instructions I see this:
>
> IF YOU ARE NOT IN THE BUSINESS OF RENTING OUT PROPERTY THEN ON 1040
> LINE 21- LIST THE TYPE AND AMOUNT OF INCOME ON THE DOTTED LINE
>
> Can I do it this way or MUST I use a schedule E?

From 1040 instructions booklet for Line 21 --

"Income from the rental of personal property if you engaged in the
rental for profit but were not in the business of renting such property.
Also, see the instructions for line 36 on page 31."

It would seem that would fit your situation to a T...

--

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by dpb on March 11, 2008, 2:14 pm
Please log in for more thread options
dpb wrote:
> seaweedsl wrote:
> ...
>
>> I am not in the business of real estate, nor rental properties, I
>> simply have somebody renting a room from me.
>>
>> Reading the IRS instructions I see this:
>>
>> IF YOU ARE NOT IN THE BUSINESS OF RENTING OUT PROPERTY THEN ON 1040
>> LINE 21- LIST THE TYPE AND AMOUNT OF INCOME ON THE DOTTED LINE
>>
>> Can I do it this way or MUST I use a schedule E?
>
> From 1040 instructions booklet for Line 21 --
>
> "Income from the rental of personal property if you engaged in the
> rental for profit but were not in the business of renting such property.
> Also, see the instructions for line 36 on page 31."
>
> It would seem that would fit your situation to a T...

No, it doesn't -- I retract that, and sorry. It refers to _personal_
property rental, not real estate.

I revert to my earlier reference to Pub 527 section on "Not Rented for
Profit" section so see if can qualify under that provision. Otherwise,
seems the Sch E route is the correct choice.

http://www.irs.gov/publications/p527/ar02.html#d0e1413

Of course, you might get away w/ a small amount on Line 21, but seems as
though you would be leaving money on the table as others have noted. Of
course, it may be that it's not sufficient $$ amount as to fret over...

--

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by seaweedsl on March 11, 2008, 2:45 pm
Please log in for more thread options

> > It would seem that would fit your situation to a T...
>
> No, it doesn't -- I retract that, and sorry. It refers to _personal_
> property rental, not real estate.
>
> I revert to my earlier reference to Pub 527 section on "Not Rented for
> Profit" section so see if can qualify under that provision. Otherwise,
> seems the Sch E route is the correct choice.

I can't see a way to call it not-for-profit. It's simply a casual
income that does add up. I missed the part about my house not being
personal property.

> Of course, you might get away w/ a small amount on Line 21, but seems as
> though you would be leaving money on the table as others have noted. Of
> course, it may be that it's not sufficient $$ amount as to fret over...

Hmm. "Might get away". Sounds hopeful. I imagine that I will be
taxed the same whether I list the income on line 21 of 1040 or line x
or schedule E. Yet I don't want to put up a red flag and attract
attention.

In any case, I doubt $3600 will qualify for a "small amount" if it's
100% of my reportable (cash gifts made up the balance) income !


Steve

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Similar ThreadsPosted
Renting a room June 12, 2007, 1:07 am
Renting a room in my home July 4, 2007, 10:57 pm
Schedule C vs. Other Income April 3, 2007, 2:26 am
Schedule C Earned Income - Excluded as Foreign Earned Income? May 31, 2007, 12:58 am
Re: Schedule C Earned Income - Excluded as Foreign Earned Income? June 3, 2007, 10:29 pm
Re: Schedule C Earned Income - Excluded as Foreign Earned Income? June 3, 2007, 10:29 pm
Re: Foreign Earned Income + 1099 + Schedule SE April 23, 2006, 3:13 am
Multi Level Partnerships (MLPs) in an IRA / Schedule K-1 Income in an IRA October 20, 2008, 12:46 pm
College Room & Board and Books using EE Bonds July 12, 2007, 1:48 am
Where do I report dividends paid on Form 5471 Schedule C or Schedule F March 12, 2008, 9:23 am

Contact Us | Privacy Policy
This site is not affiliated with Intuit - makers of Quickbooks and Quicken software
This site is not affiliated with Sage Software - makers of Peachtree accounting software
XML SitemapXML Sitemap