Mr. Moyer owns residential rental property. This year, he received $7,000 revenue from the tenants and incurred $4,900 rental expenses. Mr. Moyer must include $7,000 in gross income and is allowed $4,900 of itemized deductions for the expenses.

Question

Quizplus · Accepted Answer

Rental income is included in gross income, but rental expenses are deducted from gross income on Schedule E (Form 1040), not as itemized deductions on Schedule A.

Mr Moyer Owns Residential Rental Property