Income: Self-Employment, Rental, Partnership, and Other
As you work with this chapter, obtain the following Internal Revenue Service forms and publications to increase your understanding and to complete the chapter questions and problems.[11]
Form 1040 and Instructions
Schedule A/B (Form 1040)
Schedule C Net Profit from Business
Schedule E Supplemental Income and Loss
Schedule SE Self-Employment Taxself-employment taxSocial security and Medicare taxes imposed on income from self-employment activities (includes partnership income, S corporation income).
Form 4562Form 4562Form to claim depreciation (including section 179) and amortization expenses. Depreciation and Amortization
Form 8582Form 8582Form to report passive activity losses. Passive Activity Loss Limitations
Publication 946 How to Depreciate Property
Overview
Chapter 7, Income: Self-Employment, Rental, Partnership, and Other first covers accounting methods, accounting periods, depreciation of long-lived assets, and amortization of intangible assets. These are accounting issues, which will affect the tax expense reporting by different forms of business organizations. The tax application is, in several cases, different than in financial accounting.
The chapter will then cover the income and expense reporting for self-employed taxpayers, farmers, and from rental property. Individual taxpayers may also receive distributions from partnerships and subchapter S corporations and the chapter covers how to report the income and other items from those entities. Finally, passive losspassive lossLoss on an investment in which the owner is not a substantial participant; e.g., rental property losses. limitations and self-employment tax are discussed.
[11] The forms and publications are in addition to Your Federal Income Tax, Publication 17, Internal Revenue Service.
