Tax forms

Schedule E

Schedule E, Supplemental Income and Loss, is the form a taxpayer files with Form 1040 to report rental income and expenses, royalties, and the taxpayer's share of income from partnerships and S corporations.

Reviewed November 3, 2026

Why it matters

Schedule E separates passive and supplemental income from wages and business income. The rental property records and the K-1s behind it decide the deduction and the tax.

Example

A client owns a rental condo and receives a K-1 from a partnership. The client reports the rental income and expenses and the partnership income on Schedule E.

Related terms

Questions about Schedule E

Does a rental property go on Schedule E or Schedule C?

A long-term residential rental usually goes on Schedule E. A short-term rental with significant services may be reported on Schedule C. The level of service and the average stay decide.

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Sources

Checked November 3, 2026. Public pages and tax rules change; confirm them before relying on them.

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