! expenses related to days of personal use do not qualify

CAUTION as rental expenses. You must allocate your expenses

based on the number of days of personal use to total use of the property. For example, you used your property for personal use for 7 days and rented it for 63 days. In most cases, 10% (7 ÷ 70) of your expenses are not rental expenses and cannot be deducted on Schedule E.

QJV. Check the box for “QJV” if you owned the property as a member of a QJV reporting income not subject to self-employment tax. See Qualified Joint Venture (QJV), earlier.

Line 3 If you received rental income from real estate (including personal property leased with real estate), report the income on line 3. Use a separate column (A, B, or C) for each rental property. Include income received for renting a room or other space.

Any other income should be included and reported on line 3, with a statement attached to your return.

If you received services or property instead of money as rent, report the fair market value of the services or property as rental income on line 3.

Generally, rental real estate activity is reported on Schedule E even if it is also a trade or business activity; however, if you provided significant services to the renter, such as maid service, report the rental activity on Schedule C, not on Schedule E. Significant services do not include the furnishing of heat and light, cleaning of public areas, trash collection, or similar services.

If you were a real estate dealer, include only the rent received from real estate (including personal property leased with this real

5

estate) you held for the primary purpose of renting to produce income. Do not use Schedule E to report income and expenses from rentals of real estate you held for sale to customers in the ordinary course of your business as a real estate dealer. Instead, use Schedule C for those rentals.

For more details on rental income, see Pub. 527.

Rental income from farm production or crop shares. Report farm rental income and expenses on Form 4835 if:

• You are an individual,

• You received rental income based on crops or livestock produced by the tenant, and

• You did not materially participate in the management or operation of the farm.

Line 4 Report on line 4 royalties from oil, gas, or mineral properties (not including operating interests); copyrights; name, image, and likeness (NIL) rights (such as licensing and merchandising agreements); and patents. Use a separate column (A, B, or C) for each royalty property.

If you received $10 or more in royalties during 2025, the payer should send you a Form 1099-MISC or similar statement by January 31, 2026, showing the amount you received. Report this amount on line 4.

If you are in business as a self-employed writer, inventor, artist, etc., report your royalty income and expenses on Schedule C, not on Schedule E.

If you are a student-athlete, any monetary or financial gain, including non-cash compensation like merchandise or gift cards, you received from a transaction in which you benefit from the use of your name, image, or likeness is NIL income. If your NIL income is derived from business activities such as sponsorship deals or service income, report your income and expenses on Schedule C, not Schedule E. However, if your NIL income is royalty income that is not self-employment income, report the NIL royalty income and expenses on Schedule E.

You may be able to treat amounts received as “royalties” for the transfer of a patent or amounts received on the disposal of coal and iron ore as the sale of a capital asset. For details, see Pub. 544.

Enter on line 4 the gross amount of royalty income, even if state or local taxes were withheld from oil or gas payments you received. Include taxes withheld by the producer on line 16.

General Instructions for Lines 5 Through 21 Enter your rental and royalty expenses for each property in the appropriate column. You can deduct all ordinary and necessary expenses, such as taxes, interest, repairs, insurance, management fees, agents’ commissions, and depreciation.

Do not deduct the value of your own labor or amounts paid for capital investments or capital improvements.

Enter your total expenses for mortgage interest (line 12), depreciation expenses and depletion (line 18), and total expenses (line 20) on lines 23c through 23e, respectively, even if you have only one property.

Renting out part of your home. If you rent out only part of your home or other property, deduct the part of your expenses that applies to the rented part.

Credit or deduction for access expenditures. You may be able to claim a tax credit for eligible expenditures paid or incurred in 2025 to provide access to your business for individuals with disabilities. See Form 8826 for details.

6

You can also elect to deduct up to $15,000 of qualified costs paid or incurred in 2025 to remove architectural or transportation barriers to individuals with disabilities and the elderly.

You cannot take both the credit and the deduction for the same expenditures.

Line 6 You can deduct ordinary and necessary auto and travel expenses related to your rental activities, including 50% of meal expenses incurred while traveling away from home.

In most cases, you can either deduct your actual expenses or take the standard mileage rate. You must use actual expenses if you used more than four vehicles simultaneously in your rental activities (as in fleet operations). You cannot use actual expenses for a leased vehicle if you previously used the standard mileage rate for that vehicle.

You can use the standard mileage rate for 2025 only if you:

• Owned the vehicle and used the standard mileage rate for the first year you placed the vehicle in service; or

• Leased the vehicle and are using the standard mileage rate for the entire lease period (except the period, if any, before 1998).

If you take the standard mileage rate, multiply the number of miles driven in connection with your rental activities by 70 cents a mile. Include this amount and your parking fees and tolls on line 6.