Income – Schedules K-1 and Rental

Time Requirement: 30 minutes

Purpose

This lesson covers the reporting of certain income from Schedules K-1 and the reporting of rental income and expenses for Advanced certification. Rental Income and expenses is in scope only for Military certification.

Objectives

• Identify Schedule K-1 income items that are within the scope of the VITA/TCE program
• Determine how to report Schedule K-1 income items
• Determine which types of rental income must be reported
• Identify how to report rental expenses

Teaching the Lesson

Refer to the Lesson Plan for helpful instructor notes, visual aids, TaxSlayer® demos, and Internet links. Point out the various forms and documents used for determining and reporting:

• Income from Schedules K-1
• Rental income and expenses

Refer students who may want to work independently to Publication 4491, Income –Schedules K-1 and Rental.

Key References

This lesson refers to the following publications and forms:

• Form 13614-C
• Pub 4012, Income tab
• Pub 17, Part Two, Income, Chapter 9, Rental Income and Expenses

All references to materials can be found by clicking the Job Aids and Media buttons. There are also links to helpful tools that can be found on the irs.gov public portal. For this lesson, students can link to the following sites for additional help:

• FAQs - Can I Claim Rental Expenses?
• Interactive Tax Assistant – Can I Deduct My Mortgage Related Expenses?

TaxSlayer® Demos and Tutorials

It is recommended to go to the Practice Lab and access the latest TaxSlayer tutorial for this lesson. The TaxSlayer tutorials can be found by going to the Practice Lab and clicking on the link for TaxSlayer IRS training.

Publication 4012, Income tab, includes instructions on how to report rental income and expenses in TaxSlayer.