DESCRIPTION
This module introduces the foundational tax principles applicable to residential rental properties. Participants review common rental income and expense categories, examine the structure and reporting components of Schedule E, and explore the basic depreciation rules for residential rental real estate, including the impact of personal use. The module incorporates brainstorming activities and a comprehensive case study in which participants compute the taxable income of a residential rental property using a detailed fact pattern. By the end of the module, participants will have applied core concepts to a practical rental property scenario.
This module also includes optional content worth 0.5 CPE hour.
LEARNING OBJECTIVES
- Identify rental income and typical deductible rental expenditures reported on Schedule E.
- Discuss the applicable recovery period and depreciation method for residential rental property.
- Compute taxable income (or loss) from a residential rental property using a structured fact pattern.
- Distinguish between personal and rental use of a residential property and determine the impact on expense deductibility.
