1040

Supplemental Income and Loss

Agency
IRS
Revision
2025
Fillable fields
185
Pages
2
Official source
IRS form page
Checked
October 20, 2026
Fill 1040 online
Page 1 of form 1040

Schedule E (Form 1040): Supplemental Income and Loss

Schedule E is the IRS schedule for income or loss from rental real estate, royalties, partnerships, S corporations, estates, trusts and residual interests in real estate mortgage investment conduits (REMICs). The 2025 form says to attach it to Form 1040, 1040-SR, 1040-NR or 1041.

Page 1 is Part I, with up to three rental or royalty properties side by side in columns A, B and C. Page 2 holds Parts II to V: Schedule K-1 amounts from partnerships, S corporations, estates and trusts, REMIC income and a summary. The total on line 41 goes to Schedule 1 (Form 1040), line 5.

The instructions say a loss can be reduced or not allowed under the basis, at-risk, passive activity loss and excess business loss rules, figured on forms such as Form 6198, Form 8582 and Form 461.

What's on Schedule E

Part I, lines A to 2: the properties

Lines A and B ask about Forms 1099. Lines 1a and 1b give each property's address and type code, and line 2 the fair rental days, personal use days and the QJV box.

Part I, lines 3 to 22: income and expenses

Rents and royalties on lines 3 and 4, expenses from advertising to depreciation on lines 5 to 19, the total on line 20, the result on line 21 and any limited rental loss from Form 8582 on line 22.

Part I, lines 23a to 26: totals

Totals for all properties, then income on line 24, losses on line 25 and the total rental real estate and royalty income or loss on line 26.

Part II: partnerships and S corporations

Line 28 lists each entity with its employer identification number and columns for passive and nonpassive income and loss. Line 32 is the total.

Parts III and IV: estates, trusts and REMICs

Line 33 lists estates and trusts, totaled on line 37. Line 38 takes REMIC amounts from Schedules Q, combined on line 39.

Part V: summary

Line 40 takes net farm rental income or loss from Form 4835. Line 41 combines lines 26, 32, 37, 39 and 40 and goes to Schedule 1 (Form 1040), line 5. Lines 42 and 43 are reconciliations.

How to fill out Schedule E

  1. 1

    List each property

    Enter the address, type code and days for each property, up to three per page. The instructions say to attach more Schedules E if needed, with lines 23a to 26 filled in on only one.

  2. 2

    Count personal use days

    The instructions say a unit counts as a home if personal use was more than the greater of 14 days or 10% of the days rented at a fair price, and expenses for personal use days aren't rental expenses.

  3. 3

    Enter income and expenses

    Rents go on line 3 and royalties on line 4, then expenses on lines 5 to 19 for each column. The instructions point to Form 4562 for depreciation on assets placed in service in 2025.

  4. 4

    Check a loss against the limits

    If line 21 is a loss, the form points to Form 6198 for the at-risk rules, and line 22 takes the rental real estate loss allowed after Form 8582.

  5. 5

    Fill in page 2 from Schedules K-1

    Enter each partnership, S corporation, estate or trust amount in the matching column. The instructions say not to attach Schedules K-1 to the return.

  6. 6

    Carry line 41 to Schedule 1

    Combine the part totals on line 41 and enter the result on Schedule 1 (Form 1040), line 5. You can fill this form free on this page.

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Deadlines, fees and where to send Schedule E

Deadline

Schedule E is attached to Form 1040, 1040-SR, 1040-NR or 1041 and is due with it.

Where it goes

Attach it to your return when you mail it, or let tax software transmit it when you e-file.

Cost

The IRS form is free.

Records

The instructions say Schedules K-1 and Schedules Q are not attached to the return but kept for your records.

Forms 1099 you paid out

Line A asks about payments that require Forms 1099. The 2025 instructions give examples: Form 1099-NEC for at least $600 paid to a nonemployee for services, and Form 1099-MISC for at least $600 in rents and other amounts.

Short rentals of a home

The instructions say that if you used a unit as a home and rented it out for fewer than 15 days in 2025, the rental income isn't reported and rental expenses aren't deducted.

Related forms

Who files Schedule E?

  • Landlords with rental real estate

    Part I takes rents and expenses for each property, including income from renting a room or other space. The instructions say a part owner reports only their part of the income and expenses.

  • Royalty owners

    Royalties go on line 4, with code 6 on line 1b. The instructions say lines 1a and 2 are left blank for a royalty property.

  • Partners and S corporation shareholders

    Part II reports your share of partnership or S corporation income, even if not received, or loss, from the Schedule K-1 the entity sends.

  • Estate and trust beneficiaries

    Part III reports your part of the income or loss of an estate or trust, from the Schedule K-1 (Form 1041) the fiduciary sends.

  • Not for equipment rentals or rentals with services

    The instructions say a business of renting personal property, such as equipment or vehicles, or a rental with significant services such as maid service, goes on Schedule C instead.

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Questions about Form 1040

Does a short rental of my home go on Schedule E?

Not always. The instructions say that if you used the unit as a home and rented it out for fewer than 15 days in 2025, you don't report the rental income or deduct rental expenses.

Where does the Schedule E total go?

Line 41 goes on Schedule 1 (Form 1040), line 5. If Parts II to IV and line 40 don't apply, the form says line 26 goes there directly.

Do I attach Schedule K-1 to my return?

No. The instructions say not to attach Schedules K-1 and to keep them for your records.

How many properties fit on one Schedule E?

Three, in columns A, B and C. The instructions say to attach as many Schedules E as needed, with lines 23a to 26 filled in on only one of them.

Can a rental loss be limited?

Yes. The instructions list the basis, at-risk, passive activity loss and excess business loss rules. Form 6198, Form 8582 and Form 461 are used to figure those limits.

What is the QJV box on line 2?

It is for a qualified joint venture. The instructions describe it as an election for spouses who are the only members of a jointly owned rental real estate business and file a joint return, so they don't file Form 1065. They say a business owned through an LLC doesn't qualify.