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TheNew Schedule E

In the

Real WorldPresented by:

National Society of Accountants

1010 N. Fairfax StreetAlexandria, VA 22314

800-966-6679

www.nsacct.org

5/18/2012

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Schedule EHot Issues!

Disclosing Form 1099s

Vacation / Short-Term Rental

Qualified Joint Venture Self Rental

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New Schedule E

Major Facelift for 2011

The devil is in the details!

Unlike the New Schedule D

Just a summary form now More on that in our Schedule D seminar

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Why do we have a

Schedule E?

IRC

469 Tax Reform Act of 1986

Passive Activities

At-Risk Rules

Pass-Through Entities

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Practice Management Tip

Have a Process

Have Procedures

Do Your Due Diligence Ask The Right Questions

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Schedule E

Page 1

Whats New?

Lines A & B 1099 Mystery

Line 1 Ask first! There is a code

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Schedule E

Page 1

Whats New?

Lines A & B 1099 Mystery

Line 1 Ask first! There is a code

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Schedule E

Page 1Line 2

Fair Rental Days

Personal Use Days

Qualified Joint Venture?

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Vacation Home

Short Term Rental IRC280A

14 Day Rule

Reporting Income

Allocation of Expenses9th and 10th Circuit Court Rulings

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Qualified Joint Venture

Must be Husband and Wife

New for 2011

Both Must Materially Participate

IRC469-5Tyep, temporary

Community Property State Issues

Simple ElectionIs that a problem?

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Passive Activity Loss

Rules Passive Activities

Nonpassive Activities

Real Estate Professionals

Rev Proc 2011-34

Exceptionsof course!

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Self-Rental

Know and Understand the

Rules

Income is Non-Passive Income

Losses are Passive

Court Case Carlos v. Comm

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Schedule E

Income or Loss

More Detail

Line 3 - Form 1099-K

Line 4 - Wait for it!

Line 23!Reconciliation of Amounts Reported

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Schedule E

Income or Loss

More Detail

Line 3 - Form 1099-K

Line 4 - Wait for it!

Line 23!Reconciliation of Amounts Reported

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Schedule E

Page 2

Part IIIncome or Loss from Partnerships

Passive vs. Non-Passive

Loss Rules - Basis, Basis, BasisUnreimbursed Expenses - UPE

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Schedule E

Page 2

Part IIpart 2Income or Loss From S Corporations

Passive vs. Non-Passive

Loss Rules - Basis (again)

No Such Thing as UnreimbursedShareholder Expenses

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Schedule E

Page 2

Part III

Income or loss from estates and trusts

Again with the passive and non-passive!

Part IV

Income or loss from REMICs

Schedule Q, Form 1066

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Schedule E

Page 2

Part VLast but not Least!Farm rental incomeForm 4835

Reconciliation of farming and fishingincomeread the instructions!

Reconciliation for real estateprofessionals

IRC469(c)(7)AgarwalTC Summary

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Practice Management Tip

Ask yourself, have you;

Been Reasonable

Been Prudent

Been Ethical Asked the Right Questions

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For More Information:

National Society of Accountants(NSA)

More information is available including additionalmaterials at:

Booth in Vendor Hall

Or Table in Lobby

800-966-6679

www.nsacct.org