Question

Rental and royalty expenses do not appear directly on Form 1040.
A) True
B) False

Answer 1

Rental and royalty expenses do appear on Form 1040, but they are not reported directly. Instead, they are reported on Schedule E, which is attached to Form 1040.

Step-by-step explanation:

B) False

Rental and royalty expenses do appear on Form 1040, but they are not reported directly. Instead, they are reported on Schedule E, which is attached to Form 1040. Schedule E is used to report rental income and expenses, as well as royalty income and expenses. So, while rental and royalty expenses do not appear directly on Form 1040, they are still reported on the tax return.