Click the + icon to add Schedule E to the tax return.
Adding Rental Property Income in Taxwise (Schedule E)
M
Maddie Hoskins
Updated: Feb 02, 2025
Description
Click through a step-by-step, interactive demo walkthrough of how to add rental property income and expenses on a Schedule E and how to claim the QBI deduction in Taxwise.
Steps
1
Click the + icon to add Schedule E to the tax return.
2
Click the + icon to add Schedule E to the tax return.
Note: If Schedule E is already on the return, select Sch E Dup (duplicate) to add an additional one.
3
Enter the address of the rental property in the designated section on Schedule E.
4
To determine the property type, refer to the code key provided on Schedule E and select the appropriate code.
5
Next, enter the number of fair rental days the property was available for rent during the year.
6
Enter the total amount of rents (or royalties) the taxpayer received. This amount is often reported on a 1099-MISC form.
7
Enter the rental property expenses in the appropriate categories on Schedule E.
8
Answer whether the client was required to file 1099s for payments made related to the rental property, such as payments to contractors, property managers, or service providers.
9
Answer whether the taxpayer actively participated in the rental activity during the tax year. Active participation includes making management decisions, approving tenants, setting rental terms, or handling repairs.
10
Next, answer whether the rental property qualifies for the Qualified Business Income (QBI) deduction. This typically applies if the rental activity is considered a trade or business under IRS rules, meaning the taxpayer materially participates and regularly engages in the rental activity.