All you need to know about Form 8825

8825 form instructions


1. What is IRS Form 8825?

IRS form 8825 – which has a much longer but less memorable full name – is a form the IRS provides for the reporting of income and expenses from rental real estate activities. The 8825 form is combined with other forms (1065 or 1120S) which the IRS provides for company tax returns.

2. Who needs to fill in a Form 8825?

If your S corporation or partnership is actively involved in performing rental real estate activities, then you need to fill in a Form 8825. You will need to fill in the net income and deductible expenses from your rental real estate activities. The 8825 tax form helps you keep track of these activities and separates these revenues from other business activities.

3. How to fill in an 8825 tax form?

You can fill subjected form at The 8825 tax form comprises three parts – one section to fill in property details, one section to fill in personal information and one with form 8825 instructions so you can check everything before filing. Start by filling in the fields for the type and address of the property or properties. There are eight types of property numbered from 1 to 8. Select which is appropriate for the property or properties you have. You can fill in details for up to eight properties per form (there is room for four per page). If you have more than eight properties, you can use additional forms. Subsequently, add all income (gross rents) and expenses (advertising, cleaning and maintenance, commissions, depreciation, insurance, interest, legal fees, repairs, taxes, utilities, wages and salaries, and any other expenses) for your rental real estate activities in the tables supplied. The form gives instructions about which columns to add together to supply total expenses and income – follow these instructions and input the figures. Finally, add your name and your employer identification number. Once you have filled out your IRS 8825, send it back to the IRS – along with any other forms, including the 1120S, 1065 or 1065-B – ahead of the deadline.

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