Form 8825

Form 8825 is an IRS tax form used by partnerships and S corporations to report rental real estate income and expenses. Key points include:

1. Required for entities with rental property income

2. Reports income and expenses for each rental property separately

3. Includes sections for:

   – Property address and type

   – Rental income

   – Expenses (e.g., advertising, repairs, taxes, utilities)

   – Depreciation

4. Calculates net rental real estate income or loss

5. Information flows to Form 1065 or Form 1120S

This form helps businesses accurately report their rental property activities to the IRS. It ensures proper allocation of income and expenses for each property, which is crucial for tax purposes. Completing Form 8825 correctly is important for maintaining compliance and avoiding potential audits. While the form itself is relatively straightforward, understanding the various allowable expenses and depreciation rules can be complex. Seeking professional advice or using reliable tax preparation software can help ensure accuracy in filing this form.