About Course

This self-study program provides a comprehensive introduction to the federal income tax treatment of rental real estate reported on Schedule E. The course covers rental income recognition, deductible expenses, the repairs vs. capital improvements distinction, MACRS depreciation, the passive activity loss rules of IRC Section 469, real estate professional status, and the common errors and audit issues that arise in rental property practice.

Course Content

Module 1 – Rental Income Basics
This module introduces Schedule E reporting requirements, including taxable rental income, security deposits, services received in lieu of rent, personal use limitations, short-term rental classifications, and recordkeeping requirements for rental property activities.

Rental Income Basics

Module 2 – Rental Expenses and Depreciation
This module reviews deductible rental expenses, repairs versus capital improvements, MACRS depreciation rules, depreciable basis calculations, and depreciation recapture considerations for residential and commercial rental property.

Module 3 – Passive Activity Rules
This module explains passive activity loss limitations under IRC Section 469, material participation standards, the $25,000 special allowance, real estate professional status requirements, suspended losses, and at-risk rules.

Module 4 – Common Errors and Audit Issues
This module examines common Schedule E reporting errors, IRS audit triggers, vacation home compliance issues, documentation standards, and procedures for responding to IRS notices and examinations.

Final Assessment – Schedule E: Rental Income and Passive Activity Rules
This final examination evaluates participant understanding of rental income reporting, deductible rental expenses, depreciation rules, passive activity loss limitations, real estate professional status requirements, and federal tax compliance issues related to Schedule E reporting.

About Course

Related Courses

What Will You Learn?

Course Content

Rental Income Basics

Module 2 – Rental Expenses and Depreciation This module reviews deductible rental expenses, repairs versus capital improvements, MACRS depreciation rules, depreciable basis calculations, and depreciation recapture considerations for residential and commercial rental property.

Rental Expenses and Depreciation

Module 3 – Passive Activity Rules This module explains passive activity loss limitations under IRC Section 469, material participation standards, the $25,000 special allowance, real estate professional status requirements, suspended losses, and at-risk rules.

Passive Activity Rules

Module 4 – Common Errors and Audit Issues This module examines common Schedule E reporting errors, IRS audit triggers, vacation home compliance issues, documentation standards, and procedures for responding to IRS notices and examinations.

Common Errors and Audit Issues

Schedule E: Rental Income and Passive Activity Rules

Module 2 – Rental Expenses and Depreciation
This module reviews deductible rental expenses, repairs versus capital improvements, MACRS depreciation rules, depreciable basis calculations, and depreciation recapture considerations for residential and commercial rental property.

Module 3 – Passive Activity Rules
This module explains passive activity loss limitations under IRC Section 469, material participation standards, the $25,000 special allowance, real estate professional status requirements, suspended losses, and at-risk rules.

Module 4 – Common Errors and Audit Issues
This module examines common Schedule E reporting errors, IRS audit triggers, vacation home compliance issues, documentation standards, and procedures for responding to IRS notices and examinations.