Part IV. Rent Income

Section 501(c)(7), (9), and (17) organizations, enter gross rents on Schedule A (Form 990-T), Part I, line 6, and applicable expenses on Schedule A (Form 990-T), Part II, lines 1 through 14. All rents except those that are exempt function income must be included.

All organizations that have applicable rent income, other than section 501(c)(7), (9), and (17) organizations, should complete Schedule A (Form 990-T), Part IV. For organizations other than section 501(c)(7), (9), and (17) organizations, only the following rents are taxable on Schedule A (Form 990-T), Part I, line 6.

1. Rents from personal property leased with real property, if the rents from the personal property are more than 10% of the total rents received or accrued under the lease, determined at the time the personal property is placed in service.

2. Rents from real and personal property if:

a. More than 50% of the total rents received or

accrued under the lease are for personal property, or

b. The amount of the rent depends on the income or

profits derived by any person from the property leased (except an amount based on a fixed percentage of receipts or sales).

A redetermination of the percentage of rent for personal property is required when either:

1. There is an increase of 100% or more by the placing of additional or substitute personal property in service, or

2. There is a modification of the lease that changes the rent charged. Rents from both real and personal property not taxable on Schedule A (Form 990-T), Part I, line 6, may be taxable on Schedule A (Form 990-T), Part I, line 8, if the income is from a controlled organization or on Schedule A (Form 990-T), Part I, line 7, if the property is debt-financed. Taxability of the rent must be considered in the following order.

a. Rents not taxed on Schedule A (Form 990-T), Part

I, line 6, may be taxed on Schedule A (Form 990-T), Part I, line 8.

b. Rents not taxed on Schedule A (Form 990-T), Part

I, line 6 or line 8, may be taxed on Schedule A (Form 990-T), Part I, line 7.

Rents from personal property not leased with real property should be reported on Schedule A (Form 990-T), Part I, line 12.

See Form 8582 (for trusts) or Form 8810 (for corporations) and section 469 for limitations on losses from rental activities.

Description of Property

Line 1. Check the box next to the property description if the property is used both to carry on exempt activities and to conduct unrelated trade or business activities.

Instructions for Form 990-T (2025) 29

Deductions Directly Connected with Income from Lines 2a and 2b

Line 4. For each property, attach a statement describing the directly connected deductions and their amounts.