INSTRUCTIONS: SUPPLEMENTAL INCOME AND LOSS SCHEDULE E
For complete instructions on this form, regard the following instructions provided by the IRS: https://www.irs.gov/pub/irs-pdf/i1040se.pdf
“Supplemental Income and Loss Schedule E Step 1”
Part one is used for the following:
· income and expenses from rental real estate
· royalty income and expenses
· farm rental income and expenses based on crops for livestock produced by tenant for an estate or trust ONLY
Lines 1 and 2 need completed for all real estate properties. If you have more than three rental real estate or royalty properties, attach as many schedule E forms as necessary. For specific instructions for lines in Part 1, regard pages E-4 through E-6 of the instructions.
“Supplemental Income and Loss Schedule E Step 2”
Partnerships, joint ventures, or shareholders in an S corporation need to use Part II for reporting a share. You should receive a Schedule K-I from the partnership or S corporation, and the copy will tell you how to report your share. Regard pages E-7 and E-8 for specific instructions for Part II.
“Supplemental Income and Loss Schedule E Step 3”
Beneficiaries of an estate or trust need to use Part III for reporting a percentage of income or loss. You’ll receive a copy of a Schedule K-1 from the fiduciary, and the copy will provide instructions on how to report the items.
If there are estimated taxes credited from a trust, put “ES payment claimed” on line 37. Regard page E-8 for more instructions.
“Supplemental Income and Loss Schedule E Step 4”
If you’re a holder of a residual interest in a REMIC, you need to use Part IV to report your total share of the taxable income or loss for each quarter of the REMIC. You should receive a Schedule Q with instructions for each quarter. If you’re the holder in one or more REMIC, attach a continuation sheet using the same format as in IV. See pages E-8 through E-9 for more instructions.
“Supplemental Income and Loss Schedule E Step 5”
In line 42, you will not receive a penalty if:
· your gross farming or fishing income for 2010 or 2011 was at least 2/3 of your gross income
· you file your 2011 tax return and pay the tax due by March 1, 2012