Comprehensive Problem 4-1

Skylar and Walter Black have been married for 5 years. They live at 883 Scrub Brush Street, Apt. 52B, Las Vegas, NV 89125. Skylar is a homemaker and Walter is a high school teacher. His W-2 form is located on the next tab. Skylar's Social Security number is 222-43-7690 and Walt's is 700-01-0002.

The Blacks incurred the following expenses during their move from Maine to Nevada in January of 2017:

Cost of moving furniture	$4,775
Travel (2,988 miles at $0.17)	508
Lodging en route	520
Meals en route	90
House-hunting trip before the move	750

The school district reimbursed Walter $550 for moving expenses. These are reflected on his W-2. Walters previous job, as a high school teacher in Maine, was only 5 miles from his home. Skylar was unemployed prior to the move.

The Blacks own a ski condo located at 123 Buncombe Lane, Brian Head, UT 84719. The condo was rented for 183 days during 2017 and used by the Blacks for 17 days. Pertinent information about the condo rental is as follows:

Rental income	$16,000
Mortgage interest reported on Form 1098	8,600
Homeowners' association dues	5,200
Utilities	1,200
Maintenance	3,800
Depreciation (assume fully depreciated)	0

The above amounts do not reflect any allocation between rental and personal use of the condo. The Blacks are active managers of the condo.

Complete the Blacks' Schedule E.

SCHEDULE E (Form 1040) Department of the Treasury Internal Revenue Service (99)	Supplemental Income and Loss (From rental real estate, royalties, partnerships, S corporations, estates, trusts, REMICs, etc.) Attach to Form 1040, 1040NR, or Form 1041. Go to www.irs.gov/ScheduleE for instructions and the latest information.	OMB No. 1545-0074
		2017 Attachment Sequence No. 13

Name(s) shown on return Walter and Skylar Black

Your social security number 700-01-0002

Part I	Income or Loss From Rental Real Estate and Royalties Note: If you are in the business of renting personal property, use Schedule C or C-EZ (see instructions). If you are an individual, report farm rental income or loss from Form 4835 on page 2, line 40.

A	Did you make any payments in 2017 that would require you to file Form(s) 1099? (see instructions)	Yes	No
B	If "Yes," did you or will you file required Forms 1099?	Yes	No

1a	Physical address of each property (street, city, state, ZIP code)
A	123 Buncombe Lane, Brian Head, UT 84719
B
C
1b	Type of Property (from list below)	2	For each rental real estate property listed above, report the number of fair rental and personal use days. Check the QJV box only if you meet the requirements to file as a qualified joint venture. See instructions.		Fair Rental Days	Personal Use Days	QJV
A	3			A
B				B
C				C

Type of Property:
1 Single Family Residence	3 Vacation/Short-Term Rental	5 Land	7 Self-Rental
2 Multi-Family Residence	4 Commercial	6 Royalties	8 Other (describe)

Income:		Properties:		A		B		C
3	Rents received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .		3
4	Royalties received . . . . . . . . . . . . . . . . . . . . . . . . . . . .		4
Expenses:
5	Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .		5
6	Auto and travel (see instructions) . . . . . . . . . . . . . . . . .		6
7	Cleaning and maintenance . . . . . . . . . . . . . . . . . . . . . .		7
8	Commissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .		8
9	Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .		9
10	Legal and other professional fees . . . . . . . . . . . . . . . . . .		10
11	Management fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . .		11
12	Mortgage interest paid to banks, etc. (see instructions) . . .		12
13	Other interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .		13
14	Repairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .		14
15	Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .		15
16	Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .		16
17	Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .		17
18	Depreciation expense or depletion . . . . . . . . . . . . . . . . . .		18
19	Other (list)	Homeowners' Association Dues	19
20	Total expenses. Add lines 5 through 19 . . . . . . . . . . . . . .		20
21	Subtract line 20 from line 3 (rents) and/or 4 (royalties). If result is a (loss), see instructions to find out if you must file Form 6198 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .		21
22	Deductible rental real estate loss after limitation, if any, on Form 8582 (see instructions) . . . . . . . . . . . . . . . . . . .		22	(	)	(	)	(	)
23a	Total of all amounts reported on line 3 for all rental properties . . . . . . . . . . . . . .				23a
b	Total of all amounts reported on line 4 for all royalty properties . . . . . . . . . . . . . .				23b
c	Total of all amounts reported on line 12 for all properties . . . . . . . . . . . . . . . . . . .				23c
d	Total of all amounts reported on line 18 for all properties . . . . . . . . . . . . . . . . . . .				23d
e	Total of all amounts reported on line 20 for all properties . . . . . . . . . . . . . . . . . . .				23e
24	Income. Add positive amounts shown on line 21. Do not include any losses . . . . . . . . . . . . . . . . . . .						24
25	Losses. Add royalty losses from line 21 and rental real estate losses from line 22. Enter total losses here						25	(	)
26	Total rental real estate and royalty income or (loss). Combine lines 24 and 25. Enter the result here. If Parts II, III, IV, and line 40 on page 2 do not apply to you, also enter this amount on Form 1040, line 17, or Form 1040NR, line 18. Otherwise, include this amount in the total on line 41 on page 2 . . . . . . .						26

For Paperwork Reduction Act Notice, see the separate instructions.

Cat. No. 11344L

Schedule E (Form 1040) 2017