Schedule E, line 43


P

Pico Rico

I don't get it. Schedule E, part II could include real estate rental income
of a R.E. professional. Does that total go on line 43, also? Or are they
talking about such income that would be somewhere else on the 1040 (i.e.
other than 1040 line 17). what is the purpose of line 43?
 
A

Arthur Kamlet

I don't get it. Schedule E, part II could include real estate rental income
of a R.E. professional. Does that total go on line 43, also? Or are they
talking about such income that would be somewhere else on the 1040 (i.e.
other than 1040 line 17). what is the purpose of line 43?

See, I would have just meandered along and thrown a RE Professional's
rental income on a schedule C, but then where's the fun of deciphering
a schedule E?
 
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P

Pico Rico

Arthur Kamlet said:
See, I would have just meandered along and thrown a RE Professional's
rental income on a schedule C, but then where's the fun of deciphering
a schedule E?
--

I don't think putting this type of rental income on a schedule C would be
appropriate.
 
A

Alan

I don't get it. Schedule E, part II could include real estate rental income
of a R.E. professional. Does that total go on line 43, also? Or are they
talking about such income that would be somewhere else on the 1040 (i.e.
other than 1040 line 17). what is the purpose of line 43?
Assuming you have made the determination that this is a rental activity
and properly belongs on Schedule E, Line 43 tells the IRS that you have
met the definition of being a real estate professional with active
participation. This makes this rental activity "Active" rather than
"Passive". As such, your losses would not be limited by the passive
activity rules and you would not have to complete Form 8582 if you were
showing a loss.
 
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WOULD THIS NONPASSIVE LOSS OF A REAL ESTATE PROFESSIONAL REDUCE OTHER INCOME SUBJECT TO SELF EMPLOYMENT TAX ??
 

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