Some tax advice from MSN.com.
Schedule E blunders
"This is the Schedule that is used to report rental property, royalties, partnership income and expenses, estate income and expenses and S-Corp income and expenses," says Du Val, flagging it as the area on the federal tax form 1040 where people are most likely to make a mistake. He adds that anyone who needs to fill this out should be familiar with phrases like "property basis" and "suspended losses." If you own rental property and don't know those terms, you should start learning everything you can about them, as well as "depreciation" and "passive activities," Du Val says. Or, of course, you could hire someone who does, because things can get sticky when it comes to rental property. "For example," Du Val says, "A residential rental property is depreciated over 27 1/2 years, but furniture is depreciated over five years."
Time to start studying real estate laws, if this is my retirement plan.
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