IV. 24. Fill-in-the-Form Schedule E: Fill in the form using the information
provided. 19 points
Your instructor will provide a blank Schedule E and the net revenue will go
on line 17 on the 1040 for problem 25.
Richard (SSN 158-75-9466) and Jane (SSN 846-81-5659) Lamont rented a
two BR townhouse, residential real property and he wants you to prepare his
Schedule E.
Richard paid $90,000 for a townhouse purchased as an investment on July 1, 2015. The townhouse is located at 812
E. Locust, Springfield, MO. During 2015, he received $9,600 in rental income from the tenants and paid the
following expenses:
Association dues $ 400
Insurance 130
Mortgage interest 6,200
Real estate taxes 1,100
Repairs 220
Utilities 440
Richard drove 200 business miles for the rental property and 8,000 personal miles during the year. He wants to use
the standard per diem mileage rate for 2015.
He actively participates in the rental of the town home. He depreciates the townhouse using MACRS (straight-line
rate over 27.5 years ($90,000/27.5) but only for the six months so it is MM convention as discussed in Chapter 8,
page 8-19. Do not complete Form 4562., but show the depreciation expense for 2015 on Schedule E, line 18 and the
net profit or loss from Schedule E will be shown on the 1040 in question 25.
