Where to claim rental income from s-corp I own on 1040?

[mroman2013]

The s-corp my husband and I own pays us a small amount of rent for the part of the home it uses. We claim the rent expense on Line 11 of the 1120-S.  This seems correct. However, I had a hard time finding a place to claim the rental income on our 1040. (I think I claimed it as "other income" but can't remember which line exactly.)

So I can do this right for 2025, where does the rental expense and rental income go on the 1120-S and 1040 respectively (or supplemental forms)? Thanks in advance. 

[Vanessa A]

You would report rental income from the S-Corp as rental income instead of other income.  It will be reported on Schedule E for your personal return.  The rent expense for the S-Corp goes where you entered it on line 11 of the 1120S.   

Where do I enter income and expenses from a rental property?

[mroman2013]

Thank you. I don't see where the rental income would go on Schedule E. I only see "farm rental income." 

[Vanessa A]

Schedule E for your 1040 is for rental real estate.  The income goes on line 3. 

[mroman2013]

Yes, I see that I didn't have the full form. The first page of Schedule E did not come up for me when using TurboTax. I only have Schedule E starting with Part 2. So I don't have Line 3 where rents should be. That solves that mystery. 

I don't remember any questions on rental income in TurboTax Home & Business to generate the full Schedule E. Where would that be if I missed it? 

[Mike9241]

it's in the rental properties and royalties section

this seems like self-rental so make sure that box is check when you get to the page as to what type of rental

Self-rental occurs when you own a piece of property and rent it to a separate business that you materially participated in. "Material Participation" is a tricky tax concept with numerous ways to qualify, but in rough terms it means you spend a significant amount of time in the running of the business as either an owner or employee of the company. For example: You own a small office building and you own a law firm in which you practice as a full-time attorney. You lease space from the building to house your law office. This is a self rental.

If you materially participated in the law practice, and the property has net income, the property is considered nonpassive for that year. If the property has a loss, the loss is passive, which means that you may have to wait until next year, or a later year, to take all of your losses.

[mroman2013]

Thank you. I'll remember to check self-rental next time.