Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Schedules K-1 and Rental Income Workout

Rental Income and Expenses

Skills Warm Up: Rental Income and Expenses

Florence incurred several expenses for her rental property, which she rented out all year. Determine whether and how she can recover each of the costs.

Type a number in each blank to indicate how to recover each expense. (Some numbers may be used more than once or not at all.)

How to Recover Expense: Expense:
1. Take full deduction on Schedule E for current year Match Insurance premiums paid in advance
2. Split deduction on Schedules A and E Broken window replacement
3. Pro rate on Schedule E over more than one year Mortgage interest
4. Depreciation on Schedule E Property tax
5. Cost cannot be recovered New cabinets
  1 month unpaid rent