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P1-U09 · PART 1 · SOURCE CYCLE 2026-2027
Rental and Royalty Income
Only cards whose complete question and answer were checked against exact primary-authority evidence appear here.
Q1.Where are residential rental income and expenses generally reported?
Schedule E (Form 1040).
Q2.Where is rental activity reported when substantial services are provided primarily for the tenant’s convenience?
Schedule C (Form 1040), rather than Schedule E.
Q3.Recall the rule for this EA objective in Income And Assets: Personal property rental
Schedule 1 (Form 1040)
Q4.Recall the rule for this EA objective in Income And Assets: Royalties and related expenses
Schedule E (Form 1040)
Q5.Recall the rule for this EA objective in Income And Assets: Publicly traded partnerships (PTP) (e.g., sales, dispositions, losses)
They may offset only passive income or gain from that same partnership
Q6.Recall the rule for this EA objective in Income And Assets: Self-employment tax
A Social Security part and a Medicare part
Q7.When is a rental security deposit includible in the landlord's income?
a security deposit is generally not income when the landlord has an obligation to return it it becomes income when the landlord keeps it because the tenant breaches the lease or applies it as rent advance rent is generally income when received