1040 -Individual Tax

If you own rental property and report it on Schedule E, here’s something that slips under the radar for many taxpayers — and even some preparers. On Schedule E, you don’t just enter your rental income and expenses. One tiny detail can change the tax impact completely: 𝘄𝗵𝗲𝘁𝗵𝗲𝗿 𝘆𝗼𝘂𝗿 𝗿𝗲𝗻𝘁𝗮𝗹 𝗮𝗰𝘁𝗶𝘃𝗶𝘁𝘆 𝗶𝘀 𝗽𝗮𝘀𝘀𝗶𝘃𝗲 𝗼𝗿 𝗻𝗼𝗻-𝗽𝗮𝘀𝘀𝗶𝘃𝗲….

If you’re preparing partnership tax returns (Form 1065), there’s one question that trips up many preparers — Schedule B, Question 4.This question asks whether the partnership qualifies for an exception that allows you to skip some forms (like M-1, M-2, and B-1).Sounds simple, right? But here’s where most people get it wrong :point_down:To answer “Yes”…