Schedule E
The IRS form landlords file with their tax return to report rental income and expenses. If you own rentals in your own name, this is the form.
Every term like this one lights up in the step you're on.
Free to set up. No credit card.Part 1 of 4
Why a seller cares
Schedule E is where your rental's income, expenses and depreciation have been reported each year, and the buyer of a rental may ask to see it. It is the most honest record of a building's performance a seller has.
Part 2 of 4
A simple example
Your Schedule E for last year shows $27,000 of rent, $9,650 of expenses and $6,500 of depreciation. The buyer reads it beside the rent roll.
| What Schedule E shows | Why a buyer wants it |
|---|---|
| Rent actually reported | It was filed with the IRS, so it is not padded |
| Expenses actually claimed | Their underwriting starts from real numbers |
| Depreciation taken | Tells them nothing about the building; tells you about recapture |
Schedule E is the rental's tax record, and tax records are the ones nobody inflates.
Part 3 of 4
What people get wrong
That handing over Schedule E is oversharing. Buyers of rentals ask for it routinely, and refusing reads as something to hide.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
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