Schedule E
Could someone explain to me what a Schedule E is. I've seen the term in this forum and when looking at investment properties this is something I should be looking at...but I'm not sure what it is and what I'm looking for. Thanks for the input!
-Ryan
A schedule E is the section of your 1041 tax return that deals with passive income and expenses (i.e. Real Estate income and expenses). Investors fill these out as part of the reporting to the IRS.
Is there anything I should look for on this form...any red flags etc? When looking at the income vs. expenses what would I want to see to tell me this is a good deal or not?
Thanks,
-Ryan
Of course, on the second page, note if the tax returns were done by an accountant or by the investor. If done by an accountatnt, they would be signed. If they were done by an investor, you might be suspect, because people have been known to have more than one set of books...