Form 8825

The IRS Form 8825 is an important tax document that partnerships and S corporations can file. This article covers the purpose of Form 8825 and the Instructions for Form 8825.

Form 8825 is an important tax document used to report income generated from rental real estate properties owned by a partnership firm or an S corporation. It is also used for determining the taxes that will be paid on these properties. If you are a landlord, it is important that you properly file your business tax returns and make sure you keep good records of your business finances. This will help you to avoid penalties and get a clear picture of your business operations.

In addition, you need to be aware of the tax benefits and advantages that may be available to you. For example, you can deduct the costs of maintaining your property as part of your business expenses. To be able to properly report these income and expenses, you need to fill out and complete Form 8825 correctly. This form can be complex and confusing, especially if you are not a tax professional.

Form 8825 Instructions1
Form 8825 1

How to File Form 8825?

Generally, you can only report eight properties on one Form 8825. However, if you have more than eight properties, you can attach additional forms 8825 to your filing. You can also use this form to report a one-time extraordinary expense. If you are submitting a one-time extraordinary expense, it is necessary to specifically identify the expense on the form and provide evidence of its nature.

You should include a copy of Form 1065, U.S. Return of Partnership Income, in your filing package for each partner or shareholder that owns an interest in the company. This form shows each individual’s share of the corporation’s revenues, expenses, gains, and losses as outlined in his or her ownership interest. Finally, you should provide a copy of Schedule K-1, Partner’s Share of Income, Credits, Deductions, and Net Profits. This form also reports the individual’s share of net profits and losses from the business operation.

Partnerships and S corporations that use rental real estate to generate their income must file Form 8825 and the appropriate income tax returns. In particular, the owners of these entities need to complete the second page of Schedule E, Supplemental Income and Loss, and then file it with their personal tax returns. If you’re unsure how to file your taxes, it’s best to consult a professional.

Form 8825 Instructions

Generally, there are three pages to the form. The first two pages have instructions for the form, so you will want to read these to make sure that you are filling out the form correctly. The third page is where you will write down the income and expenses that you incurred during the year.

A good rule of thumb is to include all the expenses that relate to a particular property. This includes things like the mortgage, insurance, taxes, repairs, and other costs. You can even enter any one-time extraordinary expense, such as a casualty loss. This expense must be specifically identified on the form and can only be added back if there is evidence of it. To complete the form:

  • You must start by identifying each property.
  • Then indicate the amount of income and expenses associated with that property.
  • Enter the gross rents each property receives, advertising costs, travel and auto expenses, home or insurance costs, and other amounts you incurred.
  • Here are the codes for the 8 different properties:
  1. Single Family Residence
  2. Multi-Family Residence
  3. Vacation or Short-Term Rental
  4. Commercial
  5. Royalties
  6. Self-Rental
  7. Other (include description with the code on Form 8825 or on a separate statement)

Once you have filled out the income and expenses for each property, you will need to calculate each property’s net profit or loss. This figure will be the profit or loss you will report on Form 1065 or 1120S. The net profit or loss you report on Form 8825 will determine the taxes due on that property. You will also need to enter any deductible expenses related to that property. These can include things such as repairs, insurance, commissions, and fees.

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