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Per IRS Publication 525 Taxable and Nontaxable Income, 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't in 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. If you rent personal property for profit, include your rental expenses in the total amount you enteron Schedule 1 (Form 1040), line 22. Also, enter the amount and “PPR” on the dotted line next to line 22.

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


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Activity not for profit. Deductions for expenses related to the activity are limited. They can't total more than the income you report and can be taken only if you itemize deductions on Schedule A (Form 1040).


To report rental income from personal property in the TaxAct program:

  1. From within your TaxAct return (Online or Desktop), click Federal (on smaller devices, click in the top left corner of your screen, then click Federal).
  2. Click the Other Income dropdown, then click Rental income from personal property.
  3. Type the amount in the data entry field, then click Continue (when you file your return, Schedule 1 (Form 1040) will say "See Attached" next to line 22, and the attached sheet titled Other Income will report the amount).

To report expenses for personal property rental in the TaxAct program:

  1. From within your TaxAct return (Online or Desktop), click Federal (on smaller devices, click in the top left corner of your screen, then click Federal).
  2. Click the Other Adjustments dropdown, then click Other adjustments.
  3. Click the data entry field below Expenses for personal property rental, and type the amount (TaxAct will print "PPR" on Line 22 next to this amount).

Note. If the text for either of these situations is applicable to your return (determined by the information entered), the TaxAct program automatically places the text in the correct location on the return. The text will appear on the printed or print preview form, but is only visible in Forms View for the TaxAct Desktop 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 webpage or document at the time it is accessed.


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