Use the Rents and Royalties section to report income you received from:
- Renting out property, such as:
- Residential rental property
- Commercial property
- Vacant land
- Receiving royalty payments from:
- Copyrights
- Patents
- Oil, gas, or mineral interests
- Other royalty-producing property rights
How Rental and Royalty Income Is Reported
You may receive a tax form reporting this income, but not all rental income is reported on a form.
- Rental income is often reported in Box 1 of Form 1099-MISC, although tenants may also pay you directly without issuing a tax form.
- Royalty income is generally reported in Box 2 of Form 1099-MISC.
Even if you don't receive a Form 1099-MISC, you're still required to report taxable rental or royalty income on your tax return.
Important: Personal vs. Business Property
Only report income from personal or investment property in this section.
If the property was used in a trade or business, the income or sale may need to be reported elsewhere. For example, business-use property is generally reported on Form 4797, Sales of Business Property, rather than Schedule E.
How to Enter Rental or Royalty Income in the Program
To report rental or royalty income:
- Go to the Federal section.
- Select Income.
- Under Select My Forms, choose Profit or Loss from Rentals and Royalties.
- The program will open Schedule E, where you can enter your rental or royalty information.
If you received a 1099-MISC form, use the following path to make the entry:
- Go to the Federal section.
- Select Income.
- Under Select My Forms, choose 1099-MISC
- After completing the 1099-MISC, the program will prompt to Create Schedule E.
Need Help?
If you're unsure which information to enter or where to find it, use the Guide Me feature in the Schedule E section. It provides step-by-step assistance and can help you complete the entry more confidently.