Instructions for Schedule E 2022 Checklist
Overview of Schedule E for Tax Year 2022
Schedule E 2022 is used to report income or loss from rental real estate, royalties, partnerships,
S corporations, trusts, and other passive activities. It is attached to Form 1040, Form 1040-SR, or Form 1040-NR, depending on your filing status, and it reports specific categories of income that pass through to you.
No stimulus payment reconciliation applies to Schedule E 2022, and the unemployment compensation exclusion enacted for earlier years does not apply. Specific other provisions enacted in prior COVID-era legislation may still affect amounts reported on Schedule E in limited situations, depending on the nature of the income.
Ten-Step Checklist: Schedule E 2022 Completion
Step 1: Gather Required Documents
Collect Forms 1099-MISC that report royalties in box 2, Schedules K-1 (Forms 1065, 1120-S, and 1041) if received, mortgage interest statements, property tax records, insurance and utility statements, repair and maintenance receipts, and depreciation schedules from prior years.
If you need a U.S. taxpayer identification number and are not eligible for a Social Security number, apply for an ITIN using Form W-7, which is often filed with a federal tax return unless an exception applies.
Step 2: Report Part I—Rental Real Estate Income
For each rental property, enter the property address, type of property, and the number of days rented at a fair rental price and days of personal use.
If your personal use exceeds the greater of 14 days or 10 percent of the days the property was rented at a fair rental price, the unit is treated as used as a home, and special mixed-use rules may limit deductible expenses.
Step 3: Complete Rental Expense Columns (Lines 5–18)
Enter rental expenses by category, including mortgage interest, property taxes, insurance, utilities, repairs, and management fees.
Claim depreciation on Schedule E line 18 and complete and attach Form 4562 when required, such as when property is placed in service during 2022 or other Form 4562 filing conditions apply.
Step 4: Calculate Net Rental Income or Loss
Subtract total expenses from gross rental income to determine net income or loss.
If a net loss results, determine whether the passive activity loss rules apply and whether you must complete Form 8582 to figure the allowable deductible amount for the year.
Step 5: Report Total Rental Real Estate and Royalty Income
Complete the Part I totals by summing each rental property using the Schedule E totals and summary lines. Report royalty income on line 4 if received, and include royalty allocations shown on Schedule K-1 when applicable, following the instructions for the character of the income.
Step 6: Attach Required Schedules
Attach Schedule E to your return as needed. If you must apply passive activity loss limitations, complete and attach Form 8582. Complete and attach Form 4562 when required to support depreciation or amortization claims, and keep Schedules K-1 for your records unless the K-1 instructions specifically require attachment.
Step 7: Report Schedule E Amounts on the Correct Return Line
Report the net income or loss from Schedule E on Schedule 1 (Form 1040), line 5, and attach
Schedule E to the return. Schedule 1 totals then flow to Form 1040 as part of your overall income calculation for the year.
Step 8: Identify Passive Activity Loss Limitations
Rental real estate activities are generally treated as passive under the tax rules. A special allowance may permit a limited deduction for certain rental real estate losses when you actively participate and meet the conditions and income limits described in the Schedule E instructions.
Step 9: Sign and Date the Return
Sign and date Form 1040, Form 1040-SR, or Form 1040-NR, depending on the return filed.
Schedule E is not signed separately because it is an attachment to the primary return. If filing jointly, both spouses must sign. Unsigned returns may be rejected or delayed past the tax filing deadline.
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Step 10: Assemble and File
Attach Schedule E to Form 1040 and place all schedules and forms in the order listed by the
“Attachment Sequence No.” when filing a paper return. File the return by the IRS filing deadline shown on the IRS website unless an extension applies.
Retain records supporting tax deductions reported on Schedule E, including receipts, depreciation schedules, mortgage statements, and documents related to withholding requirements, in case the IRS requests verification. If errors are discovered after filing, an amended return may be required.
Form Changes for 2022
Schedule E 2022 did not undergo major structural or line-by-line redesigns.
The form and instructions continue to apply long-standing passive activity loss rules and depreciation reporting requirements, with no new Schedule E-specific limitations introduced for the year.
If you’re missing tax documents or want to ensure the numbers you enter match IRS records, we can help.
