Rental type codes
Enter the code for the real estate or royalty property on the Rent screen in the Rent & Royalty folder. Schedule # requires this field.
Code | Description | Results |
|---|---|---|
1 | Single family residence | Completes Schedule E, line 1a and line 2. |
2 | Multi-family residence | Completes Schedule E, line 1a and line 2. |
3 | Vacation/Short-term | Completes Schedule E, line 1a. Line 2a completes from the information on the Rent-2 screen. |
4 | Commercial | Completes Schedule E, line 1a and line 2. |
5 | Land | Completes Schedule E, line 1a and line 2. Property is treated as subject to the net income recharacterization of passive income rules. |
7 | Self-rental | Completes Schedule E, line 1a and line 2. Property is treated as subject to the net income recharacterization of passive income rules. |
8 | Other | Completes Schedule E, line 1a and line 2. |
9 | Nonbusiness Personal Property | Form 1040, Schedule 1, line 8 and line 36 |
The
Subject to recharacterization rules
automatically include Code 5 - Land and Code 7 - Self-rental properties. These rules also treat rental income as nonpassive. Refer to IRS Publication 925 for the rules that apply to recharacterization for substantially nondepreciable property (Land) or properties rented to activities with material participation (Self-rental).Code 9 - Nonbusiness personal property needs to meet the requirements for Form 1040, Schedule 1, line 8. Report income on Form 1040, Schedule 1, line 8, Report expenses on Form 1040, line 36.
