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Wednesday, February 8, 2012

IRS Update: Reminders for Schedule E Rentals

Below are reminders regarding a change on Schedule E as well as how the 2008 First Time Homebuyer Credit was allocated between the taxpayer and spouse and how that affects the use of the IRS Lookup Tool.

Schedule E – New Line 2 for Rental Property

In the past, Schedule E only asked a question regarding possible personal use for each rental activity reported on Schedule E.

Beginning with the 2011 Schedule E, the IRS now requires that the total number of days that each activity was used as rental (Fair Rental Days) and for personal use (if any) be entered for each rental property included on Schedule E. Learn more

IRS Lookup Tool for Repayment of 2008 First Time Homebuyer Credit

When looking up account information for married couples, remember that the IRS has split the credit between the taxpayer and spouse for a credit claimed in 2008 on a joint return. The taxpayer is apportioned one-half the credit and the spouse is allocated one-half the credit.

Therefore, the IRS has created a separate account for the taxpayer and spouse on the IRS system. Learn more

Click here to read the entire CrossLink Tax Update which includes more information on Schedule E Rentals and the IRS First Time Homebuyer Credit Repayment Lookup Tool.

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