Summary of Changes

Tax Forms & Publications

Work Request Notification
Title: Form 8825, Rental Real Estate Income and Expenses of a Partnership or an S Corporation
Tax Year: 2010

Processing Year: 2011

Route to:

Approved:

Date:

Section Chief:

Rene Mondesir, Jr.

Rene Mondesir, Jr.

Reviewer:

Sharon Dewsbury

Sharon Dewsbury

Review Chief:
Branch Chief:

Johnny Cervantes
Cynthia Ozkaya

Senior Technical Advisor: Curtis Freeman
Initiator (Tax Law Specialist): Robert

Johnny Cervantes

Digitally signed by Rene Mondesir, Jr.
DN: cn=Rene Mondesir, Jr., email=Rene.Mondesir@irs.gov, o=PassThrough Forms and Publication, ou=SE:W:CAR:MP:T:B:P, c=US
Date: 2010.03.16 09:19:35 -04'00'

Digitally signed by Sharon Dewsbury
DN: cn=Sharon Dewsbury, email=sharon.a.dewsbury@irs.gov,
c=US
Date: 2010.03.18 14:16:47 -04'00'

03/18/10

Digitally signed by Johnny Cervantes
DN: cn=Johnny Cervantes, o=Internal Revenue Service, ou=SE:W:
CAR:MP:T:B:R, email=Johnny.Cervantes@irs.gov, c=US
Reason: I am approving this document
Date: 2010.04.01 10:41:07 -04'00'

04/01/10

Johnny Cervantes

Digitally signed by Johnny Cervantes
DN: cn=Johnny Cervantes, o=Internal Revenue Service,
ou=SE:W:CAR:MP:T:B:R, email=Johnny.Cervantes@irs.gov,
c=US
Date: 2010.04.01 10:41:13 -04'00'

04/01/10

Johnny Cervantes

Digitally signed by Johnny Cervantes
DN: cn=Johnny Cervantes, o=Internal Revenue Service, ou=SE:
W:CAR:MP:T:B:R, email=Johnny.Cervantes@irs.gov, c=US
Date: 2010.04.01 10:41:18 -04'00'

04/01/10

B. Chapman

The information in this document can be used to develop any necessary Work Requests.
This notification is for changes due to:
✔ Legislation or Chief Counsel guidance: Pub. L. 94-455, sec. 601(a), enacting IRC sec. 280A(e)
✔ A Program change initiated by: GAO Recommendations - Reporting Compliance - GAO-08-956

The major changes are as follows:
This is the first WRN.
Changes are made to conform to Schedule E (Form 1040) questions 1 & 2. See revised line 1 attached. (GAO -08-956
Recommendation)
•The following property types should be shown in the Type column as a drop down list on electronic forms:
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 (describe)
The type column should be populated with a number option so taxpayers can select 1 to represent Single Family Residence, 2
for a Multi-Family Residence and so on. If option 8 is chosen - taxpayer should be able to write in their description.

We may need to make further changes that would require a work request.
We do not anticipate the need for any further changes that would require a Work Request.
If you have any questions, please contact:
Name: Robert B. Chapman

Name: Sharon Dewsbury

Title:

Title:

Tax Law Specialist

Tax Law Specialist (Reviewer)

Symbols: SE:W:CAR:MP:T:B:P

Symbols: SE:W:CAR:MP:T:B:R

Phone: (202) 927-9428

Phone: (202) 283-2157

Email: robert.b.chapman@irs.gov

Email: sharon.a.dewsbury@irs.gov

Room: 6141

Room: NCFB C9-452

December 2010
Form

8825

(Rev. December 2006)

Rental Real Estate Income and Expenses of a
Partnership or an S Corporation

Department of the Treasury
Internal Revenue Service

©

©

See instructions on back.
Attach to Form 1065, Form 1065-B, or Form 1120S.

Name

1

OMB No. 1545-1186

Insert A

Employer identification number

Show the kind and location of each property. See page 2 to list additional properties.

A
B
C
D

Properties
2

3
4
5
6
7
8
9
10
11
12
13
14
15

A

Rental Real Estate Income
Gross rents

2

Rental Real Estate Expenses
Advertising
Auto and travel
Cleaning and maintenance
Commissions
Insurance
Legal and other professional fees
Interest
Repairs
Taxes
Utilities
Wages and salaries
Depreciation (see instructions)
Other (list) ©

3
4
5
6
7
8
9
10
11
12
13
14

B

C

D

15

16

Total expenses for each property.
Add lines 3 through 15

16
18a

17

18a 17

Total gross rents. Add gross rents from line 2, columns A through H

18b 18

Total expenses. Add total expenses from line 16, columns A through H

19

18b
18 (

Net gain (loss) from Form 4797, Part II, line 17, from the disposition of property from rental real
estate activities

20a Net income (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)
b Identify below the partnerships, estates, or trusts from which net income (loss) is shown on line
20a. Attach a schedule if more space is needed:
(1) Name
insert the
new line
17 on
pages 1
and 2 to
follow
the line
16
format

)

19

20a

(2) Employer identification number

18a

21

Net rental real estate income (loss). Combine lines 17 through 20a. Enter the result here and on:
● Form 1065 or 1120S: Schedule K, line 2, or
● Form 1065-B: Part I, line 4

For Paperwork Reduction Act Notice, see back of form.

17 Income or (Loss) from each property. Subtract line 16 from line 2

21

Cat. No. 10136Z

Form

8825

(12-2006)

12-2010
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|

|

|

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Insert B

12-2010
Form 8825 (12-2006)

1

Page

2

Show the kind and location of each property.

E
F
G
H

Properties
2
3
4
5
6
7
8
9
10
11
12
13
14
15

E

Rental Real Estate Income
Gross rents
Rental Real Estate Expenses
Advertising
Auto and travel
Cleaning and maintenance
Commissions
Insurance
Legal and other professional fees
Interest
Repairs
Taxes
Utilities
Wages and salaries
Depreciation (see instructions)
Other (list) ©

F

G

H

2
3
4
5
6
7
8
9
10
11
12
13
14
15

16

Total expenses for each property.
Add lines 3 through 15
16

17 Income or (Loss) from each property.
Instructions

passive
activity
it |must report
the
Subtract line
16 from
linelimitations,
2
|

|
Section
references are to the Internal Revenue
Code.

2010
What’s New

The IRS will revise this December 2006 version of
Form 8825 only when necessary. Continue to use
this version of the form for tax years beginning
after 2006 until a new revision is issued.
Purpose of form. Partnerships and
S corporations use Form 8825 to report income
and deductible expenses from rental real estate
activities, including net income (loss) from rental
real estate activities that flow through from
partnerships, estates, or trusts.
Before completing this form, be sure to read:
● Passive Activity Limitations in the instructions for
Form 1065 or Form 1120S, or Passive Loss Limitation
Activities in the instructions for Form 1065-B,
especially for the definition of “rental activity.”
● Extraterritorial Income Exclusion in the
instructions for Form 1065, 1065-B, or 1120S.
Specific Instructions. Form 8825 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 this form may
differ from the number of rental real estate
activities the partnership or S corporation has for
purposes of the passive activity limitations. For
example, a partnership owns two apartment
buildings, each located in a different city. For
purposes of the passive activity limitations, the
partnership grouped both buildings into a single
activity. Although the partnership has only one
rental real estate activity for purposes of the

income and deductions for each building in
separate columns.
However, if the partnership or S corporation
has more than one rental real estate activity for
purposes of the passive activity limitations,
attach a statement to Schedule K that reports
the net income (loss) for each separate activity.
Also, attach a statement to each Schedule K-1
that reports each partner’s or shareholder’s
share of the net income (loss) by separate
activity (except for limited partners in an electing
large partnership). See Passive Activity Reporting
Requirements in the instructions for Form 1065,
Form 1065-B, or Form 1120S for additional
information that must be provided for each
activity.
Complete lines 1 through 16 for each property.
But complete lines 17 through 21 on only one
Form 8825. The figures on lines 17 and 18
should be the combined totals for all forms.
Do not report on Form 8825 any:
● 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.
Line 1. Show the kind of property rented out (for
example, “apartment building”). Give the street
address, city or town, and state.
Line 14. 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 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 Form
4562 and its instructions to figure the
depreciation deduction.
Paperwork Reduction Act Notice. We ask for
the information on this form to carry out the
Internal Revenue laws of the United States. You
are required to give us the information. We need
it to ensure that you are complying with these
laws and to allow us to figure and collect the
right amount of tax.
You are not required to provide the
information requested on a form that is subject
to the Paperwork Reduction Act unless the form
displays a valid OMB control number. Books or
records relating to a form or its instructions must
be retained as long as their contents may
become material in the administration of any
Internal Revenue law. Generally, tax returns and
return information are confidential, as required
by section 6103.
The time needed to complete and file this form
will vary depending on individual circumstances.
The estimated average time is: Recordkeeping, 6
hr., 27 min.; Learning about the law or the form,
34 min.; Preparing the form, 1 hr., 37 min.;
Copying, assembling, and sending the form to
the IRS, 16 min.
If you have comments concerning the
accuracy of these time estimates or suggestions
for making this form simpler, we would be happy
to hear from you. See the instructions for the tax
return with which this form is filed.
Form

12-2010

8825

(12-2006)

Insert A on page 1
1. Show the type and address of each property. For each rental real estate property
listed, report the number of days rented at fair rental value and days with personal use.
See instructions. See page 2 to list additional properties.
Physical address of each property – street, city,
state, zip

Type – see
instructions.

Fair
Rental
Days

Personal
Use Days

A
B
C
D

Insert B on page 2
1. Show the type and address of each property. For each rental real estate property
listed, report the number of days rented at fair rental value and days with personal use.
See instructions.
Physical address of each property – street, city,
state, zip
E
F
G
H

Type – see
instructions.

Fair
Rental
Days

Personal
Use Days