What is Form 8825?
Form 8825, Rental Real Estate Income and Expenses of a Partnership or an S Corporation, is an Internal Revenue Service (IRS) form used by partnerships and S corporations to report income and deductible expenses from rental real estate activities, including net income (or loss) from rental real estate activities that flow through partnerships, estates, or trusts.
Before completing IRS Form 8825, make sure you have read the Passive Activity Limitations and Extraterritorial Income Exclusion in the instructions for Form 1065, U.S. Return of Partnership Income, or Form 1120-S, U.S. Income Tax Return for an S Corporation.
The 8825 form provides space for up to eight properties. If there are more than eight properties, attach additional Forms 8825. The number of columns to be used for reporting income and expenses on tax form 8825 may differ from the number of rental real estate activities the partnership or S corporation has for purposes of the passive activity limitation. See Instructions for Form 8825.
Do not report on Form 8825 any of the following:
- Income or deductions from a trade or business activity or a rental activity other than rental real estate. These items are reported elsewhere.
- Portfolio income or deductions.
- Section 179 expense deduction.
- Other items that must be reported separately to the partners or shareholders.
- Commercial revitalization deductions.
After completion, the 8825 tax form must be attached to Form 1065, U.S. Return of Partnership Income, or Form 1120S, U.S. Income Tax Return for an S Corporation.
How to fill out Form 8825?
Filling out Form 8825 is quick and simple. You can download and print a PDF copy of Form 8825 from the Internal Revenue Service (IRS) website which you can manually complete. But for your convenience, you can also fill out Form 8825 electronically on PDFRun. By following the instructions below, you can accomplish the form in minutes.
There are two copies of Form 8825. The second copy is for additional properties, hence, the instructions below apply to both copies of the form.
Enter your full name.
Employer Identification Number
Enter your employer identification number (EIN).
Enter the type and address of your rental real estate property on the following lines. For each property, enter the street address, city or town, and ZIP code.
If the property is located outside the United States, enter the postal code and country. Specify the type of property by entering one of the following codes in the “Type” column.
- 1 – Single Family Residence
- 2 – Multi-Family Residence
- 3 – Vacation or Short-Term Rental
- 4 – Commercial
- 5 – Land
- 6 – Royalties
- 7 – Self-Rental
- 8 – Other (include description with the code on Form 8825 or on a separate statement)
Line A, B, C, D, E, F, G, H
Enter the address of the property in the first column. Enter the code of the property in the second column. Enter the number of days rented at a fair rental value in the third column. Enter the number of days rented for personal use in the fourth column.
Rental Real Estate Income
Enter the gross rents for each property on the appropriate columns.
Rental Real Estate Expenses
Enter the advertising expenses for each property on the appropriate columns.
Enter the auto and travel expenses for each property in the appropriate columns.
Enter the cleaning and maintenance expenses for each property on the appropriate columns.
Enter the commission expenses for each property on the appropriate columns.
Enter the insurance expenses for each property in the appropriate columns.
Enter the legal and other professional fees for each property in the appropriate column.
Enter the interest expense for each property on the appropriate columns.
Your interest expense may be limited. For more information, see the instructions for Form 8990, Business Interest Expense Limitation Under Section 163(j).
Enter the repairs expenses for each property on the appropriate columns.
Enter the taxes for each property in the appropriate columns.
Enter the utility expenses for each property on the appropriate columns.
Enter the wages and salaries for each property on the appropriate columns.
Enter the depreciation for each property on the appropriate columns.
The partnership or S corporation may claim a depreciation deduction each year for rental property (except for land, which is not depreciable). If the partnership or S corporation placed the property in service during the current tax year or claimed depreciation on any vehicle or other listed property, complete and attach Form 4562, Depreciation and Amortization. See Instructions for Form 4562 to figure out the depreciation deduction.
Enter other expenses for each property on the appropriate columns, if any.
Enter the total expenses for each property by adding lines 3 through 15.
Enter the income (or loss) from each property by subtracting line 16 from line 2.
Enter the total gross rents by adding the gross rents from line 2, columns A through H.
Enter the total expenses by adding the total expenses from line 16, columns A through H.
Enter the net gain (or loss) from Form 4797, Sales of Business Property, Part II, line 17, from the disposition of property from rental real estate activities.
Enter net income (or loss) from rental real estate activities from partnerships, estates, and trusts in which this partnership or S corporation is a partner or beneficiary (from schedule K-1, Partner’s Share of Income).
Identify below the partnerships, estates, or trusts from which net income (or loss) is shown on the preceding line. Attach a schedule if more space is needed.
Enter the name of the partner, estate, or trust.
Enter the employer identification number of the partner, estate, or trust.
Enter the net rental real estate income (or loss) by adding lines 18a through 20a. Then, enter the sum here and on Form 1065, U.S. Return of Partnership Income, or Form 1120S, U.S. Income Tax Return for an S Corporation: Schedule K, line 2.