Below are solutions to frequently asked questions about entering Schedule E rental and royalty income in the Fiduciary module of Lacerte.
Follow these steps to enter rental or royalty income:
- Go to Screen 23, Rental & Royalty Inc. (Sch. E).
- Enter the Description of the property.
- Enter the address information in the fields below the applicable U.S. or Foreign subsection.
- An address is only required for rental real estate properties. For royalty properties, line 2 and the address portion of line 1 of the Schedule E should be left blank, and you should enter code 6 for royalty property.
- Select the Type of property (Ctrl+T) from the drop down menu.
- See the Instructions for Schedule E for definitions of the types of properties.
- If you don't choose a type of property and instead enter the Other type of property field, Lacerte will generate code 8 on Schedule E, per the form instructions.
- Complete any other applicable fields in the Rental and Royalty Income (Schedule E) 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.
- Scroll down to the Income section.
- Enter the Rents or royalties received.
- Lacerte will determine if the amount relates to rents or royalties based on the Type of Property selected in step 3.
- Scroll down to the Expenses section and complete any applicable fields.
- Complete any other applicable fields on this screen.
- If you need to enter more than one Schedule E, click Add from the left navigation panel to add a new activity.