While reviewing last year\'s tax return for a new client, you see rental income

Question

While reviewing last year's tax return for a new client, you see rental income entered on the Other income secs section of the Schedule A. What was on Form 1040, and deductions for rental expenses on the Other Expenses client's situation regarding this rental property? The property was rented for less than fair market value. O The property was rented for fewer than 15 days. O The property was rented in exchange for maintenance services on the property. O The property was fully depreciated, so Schedule E was not necessary

Explanation / Answer

The Property was rented for less than fair market value.

If the rental income is less than the FMV, then it needs to be treated as other income on the Form 1040.

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