Get the IRS 1040 - Schedule E 2018-2019

Today we do a quick video on how to fill out a Schedule E so Schedule II is for people who have rental properties there are other uses for it for royalties if you have like oil stakes and oil wells and stuff like that but for today's purpose we're just going to focus on people who have rental properties whether it's just a single-family house you rent out or multi-family house like a duplex or triplex or if you have commercial real estate property it's all going to be recorded here on Schedule E so looking down here you go to the form so it Schedule E looks like so the first one part one here they're gonna ask you did you make any payments in 2012 that required your file forms 1099 so again a 1099 is just if you paid someone over six hundred dollars to do work for you and they weren't an employer they're just an individual contractor you're gonna have to issue them a 1099 so if you did pay one person more than six hundred dollars you're going to click yes here Part B is just if yes did you or will you file required forms and you better click yes here if you click yes above alright so the physical address for each property typically when you're using tax software you'll fill out a separate one for each property so we're just going to put one here six one one North Street we use my home time here Willard Ohio four four eight nine zero okay so type of property there's typically there'll be a drop-down menu here when you're filling out in tax software residential commercial or multifamily stuff like that so we're just going to say this is a residential property favorite rental days how many days did you use this as a rental versus how many days did you use it for personal use if this is a traditional rental property this is going to be 365 you're not gonna use it for personal use if you do use it for personal use it it brings up a whole other set of tax rules there so we won't get into that today but that's for people who mostly have vacation properties in they use part of it themselves and then rent it out for other parts of the year so for now we're just gonna say 365 there okay so here we get into the good stuff part one is income rents received now this is a lot of people try and give me this number they take the rents they receive so let's say they get a thousand a month that's twelve thousand a year and they subtract their mortgage payment from that that is not what you do here this is just exactly what you received in rent so if the rent that your tenant pays you is a thousand a month and they were there all year you paid twelve thousand rents for the year royalties will ignore that for now again that's for people who have steaks and like oil wells and stuff like that okay part of our mine five here we'll get into expenses advertising expenses this is typically if you had to put it in a newspaper or spend money on the internet to advertise it so it's usually not huge money for rental properties but it could be depending on how big the...