Publication 925: Passive Activity and At-Risk Rules;

This is archived information that pertains only to the 2004 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.

Schedule E (Form 1040) Supplemental Income and Loss 2004. Summary: This is an example of Schedule E (Form 1040) as pertains to the text. The completed line items are:

“Name(s) shown on return” field contains Charles and Lily Woods

“Your social security number” field contains 123-00-4567

Under “Part I: Income or Loss From Rental Real Estate and Royalties”:

“1. List the type and location of each rental real estate property:”

“A” field contains Brick Duplex--6924 26 Country Road, Anytown, Virginia 22306

“B” field contains Condo--6915 Country Road, Anytown, Virginia 22306

“2. For each rental real estate property listed on line 1, did you or your family use it during the tax year for personal purposes for more than the greater of: 14 days or 10% of the total days rented at fair rental value? (See page E-3.)”

“A No” checkbox checked

“B No” checkbox checked

	Properties: A	Properties: B	Totals (Add columns A, B, and C.)
Income: 3. Rents received	25,000	8,300	33,300
Expenses: 5. Advertising	600	210
Expenses: 7. Cleaning and Maintenance	1,500	525
Expenses: 8. Commissions	1,200	420
Expenses: 9. Insurance	2,000	700
Expenses: 10. Legal and other professional fees	1,000	390
Expenses: 12. Mortgage interest paid to banks, etcetera. (see page E-4)	9,000	8,510	17,510
Expenses: 14. Repairs	700	245
Expenses: 15. Supplies	600	210
Expenses: 16. Taxes	2,000	700
Expenses: 17. Utilities	2,400	840
Expenses: 18. Other (list) field contains Wages and salaries	9,000	3,150
19. Add lines 5 through 18	30,000	15,900	45,900
20. Depreciation expense or depletion (see page E-4)	10,000	4,000	14,000
21. Total expenses. Add lines 19 and 20	40,000	19,900
22. Income or (loss) from rental real estate or royalty properties. Subtract line 21 from line 3 (rents) or line 4 (royalties). If the result is a (loss), see page E-4 to find out if you must file Form 6198	negative 15,000	negative 11,600
23. Deductible rental real estate loss. Caution. Your rental real estate loss on line 22 may be limited. See page E-4 to find out if you must file Form 8582. Real estate professionals must complete line 43 on page 2	negative 6,155	negative 3,546

“25. Losses. Add royalty losses from line 22 and rental real estate losses from line 23. Enter total losses here” field contains negative 9,701

“26. Total rental real estate and royalty income or (loss). Combine lines 24 and 25. Enter the result here. If Parts II, III, IV, and line 40 on page 2 do not apply to you, also enter this amount on Form 1040, line 17. Otherwise, include this amount in the total on line 41 on page 2” field contains negative 9,701