Rental Income/Losses in light of new Tax Code

Forum|Forum|7 years ago
October 10, 2018
1 reply
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Hi, all...Under the new tax regulations, will rental expenses/losses/income still be treated as a separate schedule E? Are they still applicable? Thanks.

Carl11_2

Employee

Is what still applicable? All rental income/expenses is still reported on SCH E. Nothing special about the new tax laws changes any of that.

L

LouisianaFellaAuthor

Employee

Thanks, Carl. I guess I'm asking if the Schedule E is still applicable, even if a person is selected for the Standard Deduction option.

Carl11_2

Employee

Keep in mind a SCH E rental business is basically a disregarded entity. Business expenses are deducted from business income before anything is applied to the personal side of your income. If you have a mortgage on the property then while possible, it's more likely you never show a profit, and your losses just increase with each passing year. Those losses won't be "realized" until the year you sell or otherwise dispose of the property.