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Video instructions and help with filling out and completing How Form 4797 Expenditures

Instructions and Help about How Form 4797 Expenditures

Divide this text into sentences and correct mistakes: Heather, you're watching aardvark tax TV. I'm Sean Kenefick, an enrolled agent and customer service representative here at aardvark tax. This video is part of a continuing education course available on our website at wowt.com. Today, we're going to talk about rental income and expenses and the forms you might use for that. In fact, you can use three forms. The most obvious choice is Schedule E, where you put any passive income, such as rental property. However, if you are in the business of renting property, like being a real estate agent or a property management company, you would use different forms like Schedule C if you are a sole proprietor or the 1120 if you're a corporation. If you have chosen not to rent your property for profit, meaning you're not renting it at fair market value, then you cannot use Schedule E. Instead, you would put your gross income from the rental on your 1040 and your deductions on Schedule A. We will talk about Schedule C and not-for-profit rentals in other videos, so today we will concentrate on Schedule E. Each Schedule E form allows you to put up to three properties' income and expenses on it, listed as A, B, and C. If you have more than three properties for rental purposes, you will use more than one Schedule E. After listing the property, you will also talk about the amount of time it was used for rental versus personal use. We will discuss rental versus personal use in a different video, so for now, we will concentrate on full-time rentals. Next, let's talk about gross rental income. This includes the rent you receive from your tenants on a month-to-month basis, as well as other things you might not...