Avoiding Mistakes on Schedule E That Trigger IRS Scrutiny

Schedule E of IRS Form 1040 is a crucial, yet often misunderstood, section for small business owners. Whether they earn income from rental real estate, royalties, or pass-through entities (such as S corporations and partnerships), Schedule E governs the reporting, deductions, and limitations that determine tax liabilities.

This webinar dives deep into Schedule E compliance for small business owners. We'll explore how passive activity rules apply, how to maximize allowable deductions, and when certain losses are limited under Section 469. You’ll also get guidance on distinguishing between material participation and passive involvement, handling repairs vs. improvements, and navigating complex K-1 reporting from pass-through businesses.

Using real-world scenarios and audit-triggering mistakes, this session equips practitioners and small business owners with the tools to report Schedule E income accurately, minimize risk, and take advantage of overlooked deductions.