Page 244 - Individual Forms & Instructions Guide

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Fileid: … /i1040sche/2022/a/xml/cycle05/source
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
asked to explain the items reported. remain on the employment tax returns which you entered the combined totals
Good records will help you explain any for 2022. for Part I.
item and arrive at the correct tax with a Personal property. Do not use Sched-
minimum of effort. If you do not have Line A ule E to report income and expenses
records, you may have to spend time from the rental of personal property,
getting statements and receipts from var- If you made any payments in 2022 that such as equipment or vehicles. Instead,
ious sources. If you cannot produce the would require you to file any Forms use Schedule C if you are in the business
correct documents, you may have to pay 1099, check the “Yes” box. Otherwise, of renting personal property. You are in
additional tax and be subject to penal- check the “No” box. In general, if you the business of renting personal property
ties. paid at least $600 for services performed if the primary purpose for renting the
by someone who is not your employee
(nonemployee compensation), you must property is income or profit and you are
involved in the rental activity with con-
Specific file Form 1099-NEC; and, you generally tinuity and regularity.
must file Form 1099-MISC if you paid
Instructions at least $600 in rents, prizes, medical If your rental of personal property is
and health care payments, or other mis- not a business, see the instructions for
Filers of Form 1041. If you are a fidu- cellaneous amounts that would be in- Schedule 1 (Form 1040), lines 8l and
ciary filing Schedule E with Form 1041, come to the person receiving them. See 24b, to find out how to report the in-
enter the estate's or trust's employer the 2022 General Instructions for Cer- come and expenses.
identification number (EIN) in the space tain Information Returns if you are un- Extraterritorial income exclusion.
for “Your social security number.” sure whether you were required to file Except as otherwise provided in the In-
any Forms 1099. Also, see the separate ternal Revenue Code, gross income in-
instructions for each Form 1099. cludes all income from whatever source
Part I Income or Loss From derived. Gross income, however, does

Before you begin, see Line 3 Rental Real Estate and not include extraterritorial income that is
qualifying foreign trade income under
! and Line 4, later, to determine Royalties certain circumstances. Use Form 8873 to
CAUTION if you should report your rental figure the extraterritorial income exclu-
real estate and royalty income on Sched- Use Part I to report the following. sion. Report it on Schedule E as ex-
ule C or Form 4835, instead of Sched- • Income and expenses from rental plained in the Instructions for Form
ule E. real estate (including personal property 8873.
leased with real estate).
Qualified paid sick leave and qualified • Royalty income and expenses. Chapter 11 bankruptcy cases. If you
paid family leave payroll tax credit. • For an estate or trust only, farm were a debtor in a chapter 11 bankruptcy
The amount of any payroll tax credit rental income and expenses based on case, see Chapter 11 Bankruptcy Cases
taken by an employer for qualified paid crops or livestock produced by the ten- under Income in the Instructions for
sick leave and qualified paid family ant. Estates and trusts do not use Form Form 1040.
leave under the Families First Coronavi- 4835 or Schedule F (Form 1040) for this Income you report on Sched-
rus Response Act (FFCRA) and the purpose. TIP ule E may be qualified business
American Rescue Plan Act (ARP). See income and entitle you to a de-
Form 941, lines 11b, 11d, 13c, and 13e; If you own a part interest in a rental duction on Form 1040, 1040-SR, or
and Form 944, lines 8b, 8d, 10d, and real estate property, report only your 1040-NR. See the Instructions for Form
10f. You must include the full amount part of the income and expenses on 8995-A for more information about this
(both the refundable and nonrefundable Schedule E. deduction.
portions) of the credit for qualified sick Complete lines 1a, 1b, and 2 for each
and family leave wages in gross income rental real estate property. For royalty
on line 3 or 4, as applicable, for the tax property, enter code “6” on line 1b and Line 1a
year that includes the last day of any cal- leave lines 1a and 2 blank for that prop- For rental real estate property only,
endar quarter with respect to which a erty. show the street address, city or town,
credit is allowed. state, and ZIP code. If the property is lo-
If you have more than three rental re- cated in a foreign country, enter the city,
Note. A credit is available only if the al estate or royalty properties, complete province or state, country, and postal
leave was taken after March 31, 2020, and attach as many Schedules E as you code.
and before October 1, 2021, and only af- need to list them. But answer lines A
ter the qualified leave wages were paid, and B and fill in lines 23a through 26 on Line 1b
which might, under certain circumstan- only one Schedule E. The figures on Enter one of the codes listed under
ces, not occur until a quarter after Sep- lines 23a through 26 on that Schedule E “Type of Property” in Part I of the form.
tember 30, 2021, including quarters dur- should be the combined totals for all Land rental. Enter code “5” for rental
ing 2022. Accordingly, all lines related properties reported on your Schedules E. of land. For details about the tax treat-
to qualified sick and family leave wages If you are also using page 2 of Sched- ment of income from this type of rental
ule E, use the same Schedule E on

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