Stephen Landlord owns a rental property at 1806 Fox Drive, Champaign, IL 61820. This is a single-family residence and is rented the entire year. During the year he received $12,500 in rental income. He paid the following expenses:

Cleaning 483

Insurance 875

Mortgage interest 5437

Repairs 728

Property taxes 4932

In addition, the building was placed in service January 1, 2010 and the purchase price allocated to the building is 150,000. They will be eligible for a depreciation deduction on the building.

Please complete Schedule E for Stephen. He actively participates in the property and is under the income limitations.