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Entering rental and royalty income for an individual return in Lacerte

SOLVEDby IntuitLacerte Tax90Updated August 03, 2021

Below are instructions on entering rental and royalty income from the Schedule E in the Individual module of Lacerte.

Follow these steps to enter rental or royalty income in the program:

  1. Go to Screen 18, Rental & Royalty Inc. (Sch. E).
  2. Under the Rental and Royalty Income (Schedule E) section, enter the Description of the property.
  3. Enter the address Information in:
    • Street address
    • City
    • State
    • ZIP code
    • Region / ZIP code / Country (if located in a foreign country)
      • The address is only required for rental real estate properties. For royalty properties, you should leave Schedule E, line 2 and the address portion of line 1 blank. Enter code 6 for royalty property.
  4. Select the Type of property (Ctrl+T) from the dropdown menu.
    • Refer to the IRS Instructions for Schedule E for a definition of Self-Rental and Other.
    • If you choose Royalties, the address won't show on the Schedule E, per the IRS instructions.
    • If you don't choose a type of property and instead enter Other type of property, Lacerte will generate code 8 on Schedule E, per the form instructions.
  5. Complete any other applicable fields in the General Information section.
    • Lacerte considers rentals as passive activities with active conduct of a trade or business. Check the box labeled Did not actively participate to indicate that a rental is non-passive with no active conduct.
  6. Scroll down to the Income section and enter the Rents or royalties received.
    • The program will determine if the amount relates to rents or royalties based on the Type of property selected in step 4.
  7. Scroll down to the Expenses section and enter any applicable expenses that pertain to this activity.
  8. Scroll down to the Other Information section and complete any other applicable information about this activity.
 

If you need to add more than one Schedule E activity, click the Add button in the left navigation panel.

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