Publication 4491 Schedules K-1 and Rental Income

Depending on your certification path, this lesson will provide links to resource materials and practice covering the reporting of:

• Certain income from Schedules K-1 (Form 1041, Form 1065, and Form 1120S). Only volunteers who certify at the Advanced level are permitted to prepare a Schedule E with Schedule K-1 income items identified in this lesson or Form 1099-MISC, Box 2, Royalties, with no associated expenses (for volunteers with an Advanced certification).
• Rental income and expenses are in scope only for Military families renting their personal residence.

Begin this lesson by reviewing the Income – Schedules K-1 and Rental lesson from Publication 4491.

Use your resource materials to apply what you have learned:

• Identify Schedule K-1 income items that are within the scope of the VITA/TCE programs
• Determine how to report Schedule K-1 income items
• For volunteers with a Military certification, you will be able to:
  • Determine which types of rental income must be reported
  • Identify how to report rental expenses