On an individual tax form, does the biz loss on a schedule e diminish after agi exceeds 100.000 ?

Question

And disapears entirely after 150,000?? When does activity go from schedule c to schedule e???

Answer 1

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Answer 2

Schedule E is for reporting Rents & Royalties. Schedule C is for running a business as a sole proprietor and reporting business income and expenses. They are two separate types of activity and income and activity doesn't pass between the two.

If you have a loss on Schedule E, it can be used to offset other income. Many landlords have this situation and the real income from rentals is when you sell up and cash out your investments. This loss can be limited if you do not "Actively Participate" in the rental activity; it's called a passive loss limitation. There can also be limitations on depreciation deductions that kick in with the Alternative Minimum Tax and that might be what you are refering to. I don't remember the numbers; I never made enough to worry about the AMT -- so far at least...

Answer 3

Assuming the biz loss on sch e is from a S-Corp or P-ship...phase out begins @ AGI of $100k and tops out at $150k.

Schedule C is for sole proprietor's or a single member LLC (disregarded entity).

Schedule E is used to report rental/royalty income as well as income from S-Corps and Partnerships.