 So which forms to use? The basic form for reporting residential rental income and expenses is schedule E form 1040 rather than the schedule C. It looks much the same. It's an income statement type of form, but it's for the rental property. However, don't use that schedule to report a not-for-profit activity. See, not rented for profit later in chapter four. There are also other rental situations in which forms other than schedule E would be used. Schedule E form 1040. If you rent buildings, rooms, or apartments and provide basic services such as heat and light, trash collection, et cetera, you normally report your rental income and expenses on the schedule E. So notice it's not like with the rental property, it's not like you're doing nothing. You know, you're still doing some, providing some of the services, but you're not, but hopefully the property, the idea of the rental property is the property itself is gonna be basically generating revenue and you might even hire obviously management companies to do some of this other stuff, but that's far less actual service than in like a hotel kind of situation. So list your total income, expenses, and depreciation for each rental property. So we're gonna have breaking out our rental property and then we're not gonna lump all the rental property together as if it was one business, generally you're gonna take each rental property and have another kind of schedule E, basically income statement per property. So be sure to enter the number of fair rental and personal use days online too. So if you used it for personal use, we may get into that later, but we saw that that kind of muddies up the situation because now you might have like a vacation property that you rented and you used for personal use, now you've gotta break out the business versus personal as opposed to a property that's 365 days a year rental, which is more straightforward clearly. So if you have more than three rental or royalty properties complete and attached as many schedule E as are needed to separately list all the properties. However, fill in lines 23A through 26 on only one schedule E. So in other words, you're gonna have a schedule E's as many as you need to do the income statement kind of format of the schedule E, but then the bottom line of the schedule E, the bottom part, which is gonna help to kind of figure your passive limitations and whatnot will kind of group together, all the schedule E's will summarize together there. So in other words, if you had one property that had income and another property had a loss, you're gonna report them separately, but when you net them together, then you might have had income, right? So then you might not be subject to any of the loss limitations. In that case, you can kind of, you can generally net out, for example, two properties that are both kind of passive in nature, you would think that you would be able to take the losses against the other property. The question would be, can you take the other losses against other income like W-2 income or something like that? Okay, so the figure on lines 23A through 26 on the schedule E should be the combined totals of all properties reported on your schedule E. On schedule E page one, line 18, enter the depreciation you are claiming for each property. You may also need to attach form 46, I mean, sorry, 4562 to claim some or all your depreciation C form 4562 later for more information. So if you have a loss from your rental real estate activity, you may also need to complete one or both of the following forms. You got the form 69, I mean, sorry, 6198. Those are the at risk limitations. See at risk rules later. Also, you can check out publication 925 and then you've got the form 8582. These are the passive activity loss limitations and you can see passive activity limits later and we'll get into those in the next presentation. So page two of schedule E is used to report income or loss from partnership S corporation estates trusts and real estate mortgage investment conduits. If you need to use page two of schedule E and you have more than three rental or royalty properties, be sure to use page two of the same schedule E you use to enter the combined totals for your rental activity on page one. Also include the amount from line 26, part one and the quote total income or loss and quote online 41, part five. Okay, we'll take a look at forms later. Form 4562, who must complete an attached form 4562? If you are claiming the following depreciation in your rental activity. So depreciation, including the special depreciation allowance on property placed in service during 2022. So if you have special depreciation, which is we talked a little bit when we went over depreciation is like that upfront depreciation for certain types of property might qualify for then you'd have to attach another form for that. Depreciation on listed properties such as a car regardless of when it was placed in service. Otherwise, figure your depreciation on your own worksheet. You don't have to attach these computations to your return but you should keep them in your records for future reference. Those depreciation schedules do become important. Usually they're going to be generated with the help of tax software. It's kind of interesting to me that sometimes they don't require the schedules because you would think they'd want the, you know but obviously if you're picking up a new client that becomes an issue because if you get it if you get the prior year tax return if it doesn't include the depreciation schedules then that's going to be a problem because those things are going to be, you know needed for a long period of time. So whenever you pick up a new client or something like that if you're doing rental property or anything with depreciation, I would suggest you want to make sure you get the depreciation schedules from the prior return and that you, that then you enter the prior return depreciation schedules trying to match what was reported in the prior year and then roll it forward into the current year so that the software can kind of help you out. You may also need to attach form 4562 if you are claiming a section 179 deduction. That's another one of those upfront like the special deduction amortizing costs that began during 2022 or claiming any other deduction for a vehicle including the standard mileage rate or lease expenses. You can see publication 946 for information on preparing form 4562.