Question

Clarissa is the landlord of two single-family homes. she manages and maintains the properties herself and performs no services for her tenants. she charges rent at a fair market rental value. which form should clarissa use to report her rental income and expenses?

Answer 1

Clarissa should use IRS Form 1040 Schedule E to report her rental income and expenses for the single-family homes she manages as there are no services performed for the tenants.

Step-by-step explanation:

Clarissa should use IRS Form 1040 Schedule E to report her rental income and expenses from the single-family homes she owns and rents out. This form is specifically designed for reporting income and expenses related to rental real estate and royalty properties when no services are performed for the inhabitants' property. On Schedule E, Clarissa will list her rental income and deduct permissible expenses such as mortgage interest, property tax, operating expenses, depreciation, and repairs.

Maintaining accurate records and reporting to the IRS using the correct form ensures that rental income is properly declared and that all allowable expenses are claimed, minimizing potential tax liabilities.

Answer 2

Clarissa should use IRS Form 1040 Schedule E to report income and expenses for her rental properties. This form is specifically for reporting income from rental real estate and other similar types of property without additional services provided by the landlord.

Step-by-step explanation:

Clarissa, as a landlord managing and maintaining her own rental properties without providing additional services to her tenants, should report her rental income and expenses using IRS Form 1040 Schedule E. This form is designed for reporting income from rental real estate, royalties, partnerships, S corporations, estates, trusts, and residual interests in REMICs.

It requires details about the type and location of the rental property, rental income received, various types of expenses incurred, and the depreciation of the property if applicable.