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Per IRS Publication 525 Taxable and Nontaxable Income, on page 17:

Rents From Personal Property

If you rent out personal property, such as equipment or vehicles, how you report your incomeand expenses is in most cases determined by:

  • Whether or not the rental activity is a business, and
  • Whether or not the rental activity is conducted for profit.

Reporting nonbusiness income. If you aren'tin the business of renting personal property, report your rental income on Schedule 1 (Form1040), line 8. List the type and amount of the income on the dotted line next to line 8.

Reporting nonbusiness expenses. f yourent personal property for profit, include yourrental expenses in the total amount you enteron Schedule 1 (Form 1040), line 22. Also, enterthe amount and “PPR” on the dotted line next toline 22.

If you don't rent personal property for profit,your deductions are limited and you can't reporta loss to offset other income. See Activity notfor profit under Other Income.

To report the income and related expenses using TaxAct®:

  1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then click Federal.
  2. Click Other Income in the Federal Quick Q&A Topics menu to expand, then click Rental income from personal property.
  3. Enter the Income from personal property rental amount, then click Continue.

When you print your return, the text "See Attached" will print to the left of Line 22 on Schedule 1 (Form 1040) Additional Income and Adjustments to Income. An attached sheet titled Other Income will print with the amount.

To enter the expenses for personal property rental:

  1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then click Federal.
  2. Click Other Adjustments in the Federal Quick Q&A Topics menu to expand, then click Other adjustments.
  3. Enter the Expenses for personal property rental amount, then click Continue. TaxAct will print "PPR" on Line 22 next to this amount.

(IMPORTANT: Per Pub. 525, do not claim expenses greater than the rent received, as those losses will not be allowed.)

Note. If this text is applicable to your return (determined by the information entered), the TaxAct program will automatically place the text in the correct location on the return. The text will appear on the printed (or print previewed) form, but is not visible on the screen view of the form (only available to users of the Desktop version of the program).

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.


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