Week 2 Income Tax Return

The details are in the document provided below. You need to answer the questions in the document and fill out form 1040, Schedule A, Schedule B, Schedule C, Schedule 1, and Schedule 2.Please make sure you can complete it before bidding.

Lorelai R. Gilmore, born April 25, 1992, is a single taxpayer who works at the Independence Inn. She lives at 37 Maple
Street, Stars Hollow, Connecticut. Her Social Security number is 933-66-9999. Lorelai earned $40,000 in wages and had
$6,439 withheld in federal income taxes; both items were reported to her on her W-2. She also earned $30 in bank interest
from National Iron Bank (at 6 Bee Brook Rd, Stars Hollow, Connecticut 06794) on her savings account. This amount was
reported to her on her December 2023 bank statement.
Lorelai has news for you as you continue to work on her 2023 return! This is now their 2023 1040. Lorelai married her
“friend” Luke on December 31, 2023. Although they got married in 2023, they did not get around to moving in together
until mid-January of 2024. Lorelai has also not changed her name yet with the Social Security Administration. Luke’s
social security number is 888-77-2456. He was born the same year as Lorelai. Luke moved in to Lorelai’s house with
Lorelai and Rory, Lorelai’s 16-year-old daughter. Stars Hollow is a great little town, very close knit where the citizen’s
treat each other like family. Lorelai actually has family living in town. Her mother Emily and father Richard live in town.
In fact, they pay for Rory to attend a prestigious private school, Chilton Academy. The tuition for Chilton is very high,
about half of Rory’s total support for the year. Richard and Emily require that Lorelai and Rory attend Friday night
dinners at their house in return for the support they provide for Rory. Rory’s social security number is 933-77-8888. Her
birthdate is October 8, 2008.
Lorelai’s best friend Sooki also lives in Stars Hollow. Sooki and Lorelai are so close that when Sooki needed some
financial help, Lorelai insisted she move in until she was back on her feet. Sooki ended up staying with Lorelai and Rory
the full year. Sooki works as the chef at the Independence Inn; she’s been working there about half the year. She works
full time, but makes minimum wage until she completes her 6-month probationary period. Sooki’s social security number
is 882-44-8888.
Lorelai, Rory and Sooki spend a lot of time together, along with Rory’s best friend Lane. The group spends weekends
going to antique markets, farmers’ markets, and yard saling. Rory and Lane both have lots of homework to do, but they
manage to find time for fun too. On one of the group excursions, Lorelai decided to buy an antique harpsichord which she
planned to place in the Inn as a decorative piece. One of the guests tried to play the instrument, but it sounded terrible so
Lorelai had a guy she knew come to tune it. While the guy tuned the instrument, Lorelai sat and visited with him. No one
was more surprised than Lorelai when the tuner reached into the bowels of the instrument and pulled out an obstruction.
This obstruction turned out to be a wad of packing paper which when unwrapped revealed a set of antique ruby earrings.
Lorelai had the earrings appraised and it turns out the FMV of these earrings was $2,500. Rory, being ever practical, told
her mom she should definitely try to track down the former owners of the harpsichord to find the owner of the earrings.
Lorelai decided not to. Instead she kept the earrings and wore them for special occasions. Turns out, this package was the
cause of the terrible sound from the instrument so it didn’t even need tuning!!!
Lorelai and Sooki were headed down to Luke’s Diner one day for a cup of coffee (Luke has the extra big mugs Lorelai
loves) and Lorelai tripped on a crack in the sidewalk. She fell and broke some bones in her hand. It was very difficult for
her to work with a full cast on her hand (only the tips of her fingers showed!) so she had to take a few weeks off work.
Fortunately, Lorelai had purchased a disability policy from AFLAC (after seeing a commercial with Nick Saban). This
policy was not provided by Lorelai’s employer, meaning she purchased the policy with after tax dollars. She received
$3,500 from the AFLAC policy. In addition to the AFLAC policy, Lorelai received funds ($5000) from the policy
provided by her employer. This policy is furnished to Lorelai as a tax-free qualifying fringe benefit and was not reported
on her W-2. The disability benefits she received got her through the time she was off work without having to worry about
money. Whew!
Lorelai had to purchase uniforms for Rory to wear while attending Chilton. She put these on her credit card. She also
racked up quite an online shopping bill while she was at home with her broken hand. Turns out that even if you can’t
really work with a cast that covers all but the tips of your fingers, you can still scroll and click. By the end of the year,
Lorelai’s credit card company had worked with her to discharge some of her very substantial credit card debt. Of Lorelai’s
$30,000 credit card debt, the company forgave $15,000 and reported this amount to her on a 1099C.
Lorelai also was called for jury duty in 2023. She ended up serving on a jury for a week. Her employer has a policy of
paying their employees regular pay while they serve on a jury, so long as any funds received from the county for jury pay
are turned over the Inn. Lorelai received $425 from the county in return for her jury duty service. She turned the same
amount over to her employer, and received her regular weekly pay from them for the week she served.
Luke owns his own business (the diner) and his net income for the year was $65,000. He made estimated tax payments of
$10,000 in four equal installments all paid by the quarterly deadlines. (For purposes of this return, you can ignore the
Schedule C and any employment taxes Luke may owe. Simply use the net income number given, the estimated tax
payments given and put the Schedule C income of $65,000 on the correct line of the Schedule 1 and/or Form 1040.)
Lorelai would like $3 to go to the Presidential Election Campaign Fund, although she has no idea what that is. Luke
would rather not contribute to politics. They would like any refund they may receive to be deposited into Lorelai’s bank
account since her account generates interest. Lorelai’s account number is 321456987. She cannot remember the routing
number for her bank. The couple would like for you, their professional tax preparer and CPA, to deal with the IRS for
them if needed with regards to their 2023 tax return.
For those of you unfamiliar with the Gilmore Girls, it is a TV show from the early 2000’s. If you need additional
information about people mentioned in this return, you can check out this page:
https://en.wikipedia.org/wiki/Gilmore_Girls You should only use this page for character details, NOT tax information.
Please prepare Lorelai and Luke’s 2023 Form 1040 and any required schedules.
You can find the 2023 Form 1040 and its instructions at IRS.gov. You will also need Schedule 1. In addition, the
individual income tax formula is in your book in Chapter 4. It might be useful.
Tax Return 2
ACT 4494
SP 2024
Name: ____________________________________________________________________________
The AGI on this return is: $ ___________________________________________________________
I worked on this return with:
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
____________________________________________________________________________________________
I worked for approximately _________________________hrs/min on this return.
SCHEDULE 2
(Form 1040)
Department of the Treasury
Internal Revenue Service
OMB No. 1545-0074
Additional Taxes
Attachment
Sequence No. 02
Your social security number
Name(s) shown on Form 1040, 1040-SR, or 1040-NR
Part I
2023
Attach to Form 1040, 1040-SR, or 1040-NR.
Go to www.irs.gov/Form1040 for instructions and the latest information.
Tax
1
Alternative minimum tax. Attach Form 6251 . . . . . . . . . . . . . . . .
1
2
Excess advance premium tax credit repayment. Attach Form 8962 . . . . . . .
2
3
Add lines 1 and 2. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 17 . .
3
Part II Other Taxes
4
Self-employment tax. Attach Schedule SE . . . . . . . . . . . . . . . . .
5
Social security and Medicare tax on unreported tip income.
Attach Form 4137 . . . . . . . . . . . . . . . . . .
5
Uncollected social security and Medicare tax on wages. Attach
Form 8919 . . . . . . . . . . . . . . . . . . . . .
6
6
7
Total additional social security and Medicare tax. Add lines 5 and 6
8
Additional tax on IRAs or other tax-favored accounts. Attach Form 5329 if required.
. . . . . .
4
7
If not required, check here . . . . . . . . . . . . . . . . . . . . .
8
9
Household employment taxes. Attach Schedule H
. . . . . . . . . . . . .
9
10
Repayment of first-time homebuyer credit. Attach Form 5405 if required . . . . .
10
11
Additional Medicare Tax. Attach Form 8959 . . . . . . . . . . . . . . . .
11
12
Net investment income tax. Attach Form 8960 . . . . . . . . . . . . . . .
12
13
Uncollected social security and Medicare or RRTA tax on tips or group-term life
insurance from Form W-2, box 12 . . . . . . . . . . . . . . . . . . . .
13
Interest on tax due on installment income from the sale of certain residential lots
and timeshares . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14
Interest on the deferred tax on gain from certain installment sales with a sales price
over $150,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15
Recapture of low-income housing credit. Attach Form 8611 . . . . . . . . . .
16
14
15
16
(continued on page 2)
For Paperwork Reduction Act Notice, see your tax return instructions.
Cat. No. 71478U
Schedule 2 (Form 1040) 2023
Page 2
Schedule 2 (Form 1040) 2023
Part II Other Taxes (continued)
17
Other additional taxes:
a Recapture of other credits. List type, form number, and amount:
17a
b Recapture of federal mortgage subsidy, if you sold your home
see instructions . . . . . . . . . . . . . . . . . . . 17b
c Additional tax on HSA distributions. Attach Form 8889 . . . .
17c
d Additional tax on an HSA because you didn’t remain an eligible
individual. Attach Form 8889 . . . . . . . . . . . . . . 17d
e Additional tax on Archer MSA distributions. Attach Form 8853 .
17e
f Additional tax on Medicare Advantage MSA distributions. Attach
17f
Form 8853 . . . . . . . . . . . . . . . . . . . . .
g Recapture of a charitable contribution deduction related to a
fractional interest in tangible personal property . . . . . . . 17g
h Income you received from a nonqualified deferred compensation
plan that fails to meet the requirements of section 409A . . . 17h
i Compensation you received from a nonqualified deferred
compensation plan described in section 457A . . . . . . .
17i
j
Section 72(m)(5) excess benefits tax . . . . . . . . . . .
k Golden parachute payments
l
17j
. . . . . . . . . . . . . .
17k
Tax on accumulation distribution of trusts . . . . . . . . .
17l
m Excise tax on insider stock compensation from an expatriated
corporation . . . . . . . . . . . . . . . . . . . . . 17m
n Look-back interest under section 167(g) or 460(b) from Form
8697 or 8866 . . . . . . . . . . . . . . . . . . . . 17n
o Tax on non-effectively connected income for any part of the
year you were a nonresident alien from Form 1040-NR . . . . 17o
p Any interest from Form 8621, line 16f, relating to distributions
from, and dispositions of, stock of a section 1291 fund . . . . 17p
q Any interest from Form 8621, line 24 . . . . . . . . . . .
17q
z Any other taxes. List type and amount:
17z
18
Total additional taxes. Add lines 17a through 17z . . . . . . . . . . . . . .
18
19
Reserved for future use
19
20
21
Section 965 net tax liability installment from Form 965-A . . .
20
Add lines 4, 7 through 16, and 18. These are your total other taxes. Enter here and
on Form 1040 or 1040-SR, line 23, or Form 1040-NR, line 23b . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . .
21
Schedule 2 (Form 1040) 2023
SCHEDULE 1
(Form 1040)
Department of the Treasury
Internal Revenue Service
2023
Attach to Form 1040, 1040-SR, or 1040-NR.
Go to www.irs.gov/Form1040 for instructions and the latest information.
Attachment
Sequence No. 01
Your social security number
Name(s) shown on Form 1040, 1040-SR, or 1040-NR
Part I
OMB No. 1545-0074
Additional Income and Adjustments to Income
Additional Income
1
2a
b
3
4
5
6
7
8
a
b
c
d
e
f
g
h
i
j
k
l
Taxable refunds, credits, or offsets of state and local income taxes . . . . . . . . .
1
Alimony received . . . . . . . . . . . . . . . . . . . . . . . . . . .
2a
Date of original divorce or separation agreement (see instructions):
Business income or (loss). Attach Schedule C . . . . . . . . . . . . . . . . .
3
Other gains or (losses). Attach Form 4797 . . . . . . . . . . . . . . . . . .
4
Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E .
5
Farm income or (loss). Attach Schedule F . . . . . . . . . . . . . . . . . . .
6
Unemployment compensation . . . . . . . . . . . . . . . . . . . . . . .
7
Other income:
)
Net operating loss . . . . . . . . . . . . . . . . . . .
8a (
Gambling . . . . . . . . . . . . . . . . . . . . . .
8b
Cancellation of debt . . . . . . . . . . . . . . . . . .
8c
)
Foreign earned income exclusion from Form 2555 . . . . . . .
8d (
Income from Form 8853 . . . . . . . . . . . . . . . . .
8e
Income from Form 8889 . . . . . . . . . . . . . . . . .
8f
Alaska Permanent Fund dividends . . . . . . . . . . . . .
8g
Jury duty pay . . . . . . . . . . . . . . . . . . . . .
8h
Prizes and awards . . . . . . . . . . . . . . . . . . .
8i
Activity not engaged in for profit income . . . . . . . . . . .
8j
Stock options . . . . . . . . . . . . . . . . . . . . .
8k
Income from the rental of personal property if you engaged in the rental
for profit but were not in the business of renting such property . . .
8l
m Olympic and Paralympic medals and USOC prize money (see
instructions) . . . . . . . . . . . . . . . . . . . . .
8m
n Section 951(a) inclusion (see instructions) . . . . . . . . . .
8n
o Section 951A(a) inclusion (see instructions) . . . . . . . . . .
8o
p Section 461(l) excess business loss adjustment . . . . . . . .
8p
q Taxable distributions from an ABLE account (see instructions) . . .
8q
r Scholarship and fellowship grants not reported on Form W-2 . . .
8r
s Nontaxable amount of Medicaid waiver payments included on Form
)
1040, line 1a or 1d . . . . . . . . . . . . . . . . . . .
8s (
t Pension or annuity from a nonqualifed deferred compensation plan or
a nongovernmental section 457 plan . . . . . . . . . . . .
8t
u Wages earned while incarcerated . . . . . . . . . . . . .
8u
z Other income. List type and amount:
8z
9 Total other income. Add lines 8a through 8z . . . . . . . . . . . . . . . . . .
9
10 Combine lines 1 through 7 and 9. This is your additional income. Enter here and on Form
1040, 1040-SR, or 1040-NR, line 8 . . . . . . . . . . . . . . . . . . . . .
10
For Paperwork Reduction Act Notice, see your tax return instructions.
Cat. No. 71479F
Schedule 1 (Form 1040) 2023
Page 2
Schedule 1 (Form 1040) 2023
Part II Adjustments to Income
11
12
13
14
15
16
17
18
19a
b
c
20
21
22
23
24
a
b
c
d
e
f
g
h
i
j
k
z
25
26
Educator expenses . . . . . . . . . . . . . . . . . . . . . . . . . . .
11
Certain business expenses of reservists, performing artists, and fee-basis government
officials. Attach Form 2106 . . . . . . . . . . . . . . . . . . . . . . . .
12
Health savings account deduction. Attach Form 8889 . . . . . . . . . . . . . .
13
Moving expenses for members of the Armed Forces. Attach Form 3903 . . . . . . .
14
Deductible part of self-employment tax. Attach Schedule SE . . . . . . . . . . .
15
Self-employed SEP, SIMPLE, and qualified plans . . . . . . . . . . . . . . . .
16
Self-employed health insurance deduction . . . . . . . . . . . . . . . . . .
17
Penalty on early withdrawal of savings . . . . . . . . . . . . . . . . . . . .
18
Alimony paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19a
Recipient’s SSN . . . . . . . . . . . . . . . . . . . . . .
Date of original divorce or separation agreement (see instructions):
IRA deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
20
Student loan interest deduction . . . . . . . . . . . . . . . . . . . . . .
21
22
Reserved for future use . . . . . . . . . . . . . . . . . . . . . . . . .
Archer MSA deduction . . . . . . . . . . . . . . . . . . . . . . . . .
23
Other adjustments:
Jury duty pay (see instructions) . . . . . . . . . . . . . .
24a
Deductible expenses related to income reported on line 8l from the
rental of personal property engaged in for profit . . . . . . . .
24b
Nontaxable amount of the value of Olympic and Paralympic medals
and USOC prize money reported on line 8m . . . . . . . . . .
24c
Reforestation amortization and expenses . . . . . . . . . . .
24d
Repayment of supplemental unemployment benefits under the Trade
Act of 1974 . . . . . . . . . . . . . . . . . . . . . .
24e
Contributions to section 501(c)(18)(D) pension plans . . . . . . .
24f
Contributions by certain chaplains to section 403(b) plans . . . .
24g
Attorney fees and court costs for actions involving certain unlawful
discrimination claims (see instructions) . . . . . . . . . . . .
24h
Attorney fees and court costs you paid in connection with an award
from the IRS for information you provided that helped the IRS detect
tax law violations . . . . . . . . . . . . . . . . . . .
24i
Housing deduction from Form 2555 . . . . . . . . . . . . .
24j
Excess deductions of section 67(e) expenses from Schedule K-1 (Form
1041) . . . . . . . . . . . . . . . . . . . . . . . .
24k
Other adjustments. List type and amount:
24z
Total other adjustments. Add lines 24a through 24z . . . . . . . . . . . . . . .
25
Add lines 11 through 23 and 25. These are your adjustments to income. Enter here and on
Form 1040, 1040-SR, or 1040-NR, line 10 . . . . . . . . . . . . . . . . . .
26
Schedule 1 (Form 1040) 2023
SCHEDULE C
(Form 1040)
Profit or Loss From Business
Department of the Treasury
Internal Revenue Service
OMB No. 1545-0074
2023
(Sole Proprietorship)
Attach to Form 1040, 1040-SR, 1040-SS, 1040-NR, or 1041; partnerships must generally file Form 1065.
Go to www.irs.gov/ScheduleC for instructions and the latest information.
Attachment
Sequence No. 09
Name of proprietor
Social security number (SSN)
A
Principal business or profession, including product or service (see instructions)
B Enter code from instructions
C
Business name. If no separate business name, leave blank.
D Employer ID number (EIN) (see instr.)
E
Business address (including suite or room no.)
F
G
City, town or post office, state, and ZIP code
Cash
(2)
Accrual
(3)
Other (specify)
Accounting method:
(1)
Did you “materially participate” in the operation of this business during 2023? If “No,” see instructions for limit on losses
.
Yes
No
H
I
J
If you started or acquired this business during 2023, check here . . . . . . . . . . .
Did you make any payments in 2023 that would require you to file Form(s) 1099? See instructions .
If “Yes,” did you or will you file required Form(s) 1099? . . . . . . . . . . . . . .
.
.
.
Yes
Yes
No
No
Part I
1
Income
.
.
.
.
.
.
.
.
.
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.
2
3
4
Gross receipts or sales. See instructions for line 1 and check the box if this income was reported to you on
Form W-2 and the “Statutory employee” box on that form was checked . . . . . . . . .
Returns and allowances . . . . . . . . . . . . . . . . . . . . . . . . .
Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . .
Cost of goods sold (from line 42) . . . . . . . . . . . . . . . . . . . . . .
1
2
3
4
5
6
7
Gross profit. Subtract line 4 from line 3 . . . . . . . . . . . . . . . . .
Other income, including federal and state gasoline or fuel tax credit or refund (see instructions) .
Gross income. Add lines 5 and 6 . . . . . . . . . . . . . . . . . . .
.
.
.
5
6
7
8
Advertising .
9
Car and truck expenses
(see instructions) . . .
Commissions and fees .
Contract labor (see instructions)
Office expense (see instructions) .
Pension and profit-sharing plans .
18
19
Rent or lease (see instructions):
Vehicles, machinery, and equipment
Other business property . . .
20a
20b
Repairs and maintenance . . .
Supplies (not included in Part III) .
Taxes and licenses . . . . .
21
22
23
a
b
Travel and meals:
Travel . . . . . . . . .
Deductible meals (see instructions)
24a
24b
25
26
27a
Utilities . . . . . . . .
Wages (less employment credits)
Other expenses (from line 48) . .
25
26
27a
17
28
Other . . . . . .
16b
b Energy efficient commercial bldgs
Legal and professional services
17
deduction (attach Form 7205) . .
Total expenses before expenses for business use of home. Add lines 8 through 27b . . . . . . .
27b
28
29
Tentative profit or (loss). Subtract line 28 from line 7 .
29
30
Expenses for business use of your home. Do not report these expenses elsewhere. Attach Form 8829
unless using the simplified method. See instructions.
Simplified method filers only: Enter the total square footage of (a) your home:
Part II
10
11
Expenses. Enter expenses for business use of your home only on line 30.
.
.
.
.
12
13
Depletion . . . . .
Depreciation and section 179
expense
deduction
(not
included in Part III) (see
instructions)
. . . .
14
Employee benefit programs
(other than on line 19)
.
Insurance (other than health)
Interest (see instructions):
Mortgage (paid to banks, etc.)
15
16
a
b
8
18
19
9
10
11
20
12
21
22
23
13
24
a
b
14
15
16a
.
.
.
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.
.
and (b) the part of your home used for business:
Method Worksheet in the instructions to figure the amount to enter on line 30
.
.
.
.
.
.
.
.
.
.
.
.
.
.
. Use the Simplified
. . . . . . .
31
Net profit or (loss). Subtract line 30 from line 29.
32
• If a profit, enter on both Schedule 1 (Form 1040), line 3, and on Schedule SE, line 2. (If you
checked the box on line 1, see instructions.) Estates and trusts, enter on Form 1041, line 3.
• If a loss, you must go to line 32.
If you have a loss, check the box that describes your investment in this activity. See instructions.
• If you checked 32a, enter the loss on both Schedule 1 (Form 1040), line 3, and on Schedule
SE, line 2. (If you checked the box on line 1, see the line 31 instructions.) Estates and trusts, enter on
Form 1041, line 3.
• If you checked 32b, you must attach Form 6198. Your loss may be limited.
For Paperwork Reduction Act Notice, see the separate instructions.
.
.
.
Cat. No. 11334P
}
}
.
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30
31
32a
32b
All investment is at risk.
Some investment is not
at risk.
Schedule C (Form 1040) 2023
Page 2
Schedule C (Form 1040) 2023
Part III
Cost of Goods Sold (see instructions)
33
Method(s) used to
value closing inventory:
34
Was there any change in determining quantities, costs, or valuations between opening and closing inventory?
If “Yes,” attach explanation . . . . . . . . . . . . . . . . . . . . . . . . .
a
b
Cost
c
Lower of cost or market
Other (attach explanation)
35
Inventory at beginning of year. If different from last year’s closing inventory, attach explanation .
.
.
35
36
Purchases less cost of items withdrawn for personal use
.
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36
37
Cost of labor. Do not include any amounts paid to yourself .
.
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.
37
38
Materials and supplies
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38
39
Other costs .
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39
40
Add lines 35 through 39 .
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40
41
Inventory at end of year .
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41
42
Cost of goods sold. Subtract line 41 from line 40. Enter the result here and on line 4 .
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42
Part IV
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Yes
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Information on Your Vehicle. Complete this part only if you are claiming car or truck expenses on line 9 and
are not required to file Form 4562 for this business. See the instructions for line 13 to find out if you must file
Form 4562.
/
/
43
When did you place your vehicle in service for business purposes? (month/day/year)
44
Of the total number of miles you drove your vehicle during 2023, enter the number of miles you used your vehicle for:
a
No
b Commuting (see instructions)
Business
c Other
45
Was your vehicle available for personal use during off-duty hours?
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Yes
No
46
Do you (or your spouse) have another vehicle available for personal use?.
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Yes
No
47a
Do you have evidence to support your deduction?
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Yes
No
If “Yes,” is the evidence written?
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Yes
No
b
Part V
48
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Other Expenses. List below business expenses not included on lines 8–26, line 27b, or line 30.
Total other expenses. Enter here and on line 27a
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48
Schedule C (Form 1040) 2023
SCHEDULE E
(Form 1040)
Supplemental Income and Loss
OMB No. 1545-0074
Attach to Form 1040, 1040-SR, 1040-NR, or 1041.
Go to www.irs.gov/ScheduleE for instructions and the latest information.
Attachment
Sequence No. 13
Your social security number
Name(s) shown on return
Part I
A
B
1a
A
B
C
1b
2023
(From rental real estate, royalties, partnerships, S corporations, estates, trusts, REMICs, etc.)
Department of the Treasury
Internal Revenue Service
Income or Loss From Rental Real Estate and Royalties
Note: If you are in the business of renting personal property, use Schedule C. See instructions. If you are an individual, report farm
rental income or loss from Form 4835 on page 2, line 40.
Did you make any payments in 2023 that would require you to file Form(s) 1099? See instructions .
If “Yes,” did you or will you file required Form(s) 1099? . . . . . . . . . . . . . .
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Yes
Yes
No
No
Physical address of each property (street, city, state, ZIP code)
Type of Property
(from list below)
2
A
B
C
Type of Property:
1 Single Family Residence
2 Multi-Family Residence
For each rental real estate property listed
above, report the number of fair rental and
personal use days. Check the QJV box only
if you meet the requirements to file as a
qualified joint venture. See instructions.
3 Vacation/Short-Term Rental
4 Commercial
Fair Rental
Days
Personal Use
Days
A
B
C
5 Land
6 Royalties
7 Self-Rental
8 Other (describe)
Properties:
Income:
A
B
3
Rents received . . . . . . . . . . . . . .
3
4
Royalties received . . . . . . . . . . . . .
4
Expenses:
5
5
Advertising . . . . . . . . . . . . . . .
6
Auto and travel (see instructions) . . . . . . .
6
7
Cleaning and maintenance . . . . . . . . . .
7
8
Commissions . . . . . . . . . . . . . .
8
9
Insurance . . . . . . . . . . . . . . . .
9
10
Legal and other professional fees . . . . . . .
10
11
Management fees . . . . . . . . . . . . .
11
12
Mortgage interest paid to banks, etc. (see instructions)
12
13
Other interest . . . . . . . . . . . . . .
13
14
Repairs . . . . . . . . . . . . . . . . .
14
15
Supplies . . . . . . . . . . . . . . . .
15
16
Taxes . . . . . . . . . . . . . . . . .
16
17
Utilities . . . . . . . . . . . . . . . . .
17
18
Depreciation expense or depletion . . . . . . .
18
19
19
Other (list)
20
Total expenses. Add lines 5 through 19 . . . . .
20
21
Subtract line 20 from line 3 (rents) and/or 4 (royalties). If
result is a (loss), see instructions to find out if you must
file Form 6198 . . . . . . . . . . . . . .
21
22
Deductible rental real estate loss after limitation, if any,
on Form 8582 (see instructions) . . . . . . . .
)(
)(
22 (
23a Total of all amounts reported on line 3 for all rental properties
. . . .
23a
b Total of all amounts reported on line 4 for all royalty properties . . . .
23b
c Total of all amounts reported on line 12 for all properties . . . . . .
23c
d Total of all amounts reported on line 18 for all properties . . . . . .
23d
e Total of all amounts reported on line 20 for all properties . . . . . .
23e
24
Income. Add positive amounts shown on line 21. Do not include any losses
. . . . . . .
24
25
Losses. Add royalty losses from line 21 and rental real estate losses from line 22. Enter total losses here
25 (
26
Total rental real estate and royalty income or (loss). Combine lines 24 and 25. Enter the result
here. If Parts II, III, and IV, and line 40 on page 2 do not apply to you, also enter this amount on
Schedule 1 (Form 1040), line 5. Otherwise, include this amount in the total on line 41 on page 2 .
26
For Paperwork Reduction Act Notice, see the separate instructions.
QJV
Cat. No. 11344L
C
)
)
Schedule E (Form 1040) 2023
Attachment Sequence No. 13
Schedule E (Form 1040) 2023
Page 2
Your social security number
Name(s) shown on return. Do not enter name and social security number if shown on other side.
Caution: The IRS compares amounts reported on your tax return with amounts shown on Schedule(s) K-1.
Part II
Income or Loss From Partnerships and S Corporations
Note: If you report a loss, receive a distribution, dispose of stock, or receive a loan repayment from an S corporation, you must check
the box in column (e) on line 28 and attach the required basis computation. If you report a loss from an at-risk activity for which any
amount is not at risk, you must check the box in column (f) on line 28 and attach Form 6198. See instructions.
27
Are you reporting any loss not allowed in a prior year due to the at-risk or basis limitations, a prior year unallowed loss from a
passive activity (if that loss was not reported on Form 8582), or unreimbursed partnership expenses? If you answered “Yes,”
see instructions before completing this section . . . . . . . . . . . . . . . . . . . .
Yes
No
28
(b) Enter P for
partnership; S
for S corporation
(a) Name
(c) Check if
foreign
partnership
(e) Check if
(f) Check if
basis computation any amount is
is required
not at risk
(d) Employer
identification number
A
B
C
D
Passive Income and Loss
(g) Passive loss allowed
(attach Form 8582 if required)
A
B
C
D
29a
b
30
31
32
Nonpassive Income and Loss
(h) Passive income
from Schedule K-1
(i) Nonpassive loss allowed
(see Schedule K-1)
(j) Section 179 expense
deduction from Form 4562
Totals
Totals
Add columns (h) and (k) of line 29a . . . . . . . . . . . . . . . .
Add columns (g), (i), and (j) of line 29b . . . . . . . . . . . . . . .
Total partnership and S corporation income or (loss). Combine lines 30 and 31
Part III
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(k) Nonpassive income
from Schedule K-1
30
31 (
32
)
Income or Loss From Estates and Trusts
33
(b) Employer
identification number
(a) Name
A
B
Passive Income and Loss
(c) Passive deduction or loss allowed
(attach Form 8582 if required)
A
B
34a
b
35
36
37
38
42
43
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(f) Other income from
Schedule K-1
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35
36 (
37
)
Income or Loss From Real Estate Mortgage Investment Conduits (REMICs)—Residual Holder
(a) Name
(b) Employer
identification number
(c) Excess inclusion from
Schedules Q, line 2c
(see instructions)
(d) Taxable income
(net loss) from
Schedules Q, line 1b
Combine columns (d) and (e) only. Enter the result here and include in the total on line 41 below .
Part V
40
41
(e) Deduction or loss
from Schedule K-1
Totals
Totals
Add columns (d) and (f) of line 34a
. . . . . . . . . . .
Add columns (c) and (e) of line 34b . . . . . . . . . . .
Total estate and trust income or (loss). Combine lines 35 and 36 .
Part IV
39
Nonpassive Income and Loss
(d) Passive income
from Schedule K-1
(e) Income from
Schedules Q, line 3b
39
Summary
Net farm rental income or (loss) from Form 4835. Also, complete line 42 below . . . . . . .
Total income or (loss). Combine lines 26, 32, 37, 39, and 40. Enter the result here and on Schedule
1 (Form 1040), line 5 . . . . . . . . . . . . . . . . . . . . . . . . . .
Reconciliation of farming and fishing income. Enter your gross
farming and fishing income reported on Form 4835, line 7; Schedule K-1
(Form 1065), box 14, code B; Schedule K-1 (Form 1120-S), box 17, code
AN; and Schedule K-1 (Form 1041), box 14, code F. See instructions .
42
Reconciliation for real estate professionals. If you were a real estate
professional (see instructions), enter the net income or (loss) you
reported anywhere on Form 1040, Form 1040-SR, or Form 1040-NR
from all rental real estate activities in which you materially participated
under the passive activity loss rules . . . . . . . . . . . .
43
40
41
Schedule E (Form 1040) 2023