How do I report rental income?
Real estate rental income is reported on Schedule E of Form 1040 and Form 4562 is used to report depreciation deductions for buildings acquired in the tax year. You can report rental income either on a cash or accrual basis. If you report it on a cash basis, you report rent income for the year in which you receive payment (or where it is credited to your bank account). On an accrual basis, you report income for the year in which you are entitled to receive payment, even if it is not actually paid. For additional information about rental income, please see the individual entries in the QuizLaw navigation structure to the left.