E-1 Cat. No. 24332T 1999 Instructions for Schedule E, Supplemental Income and Loss Use Schedule E (Form 1040) to report income or loss from rental real estate, royalties, partnerships, S corporations, estates, trusts, and residual interests in REMICs. You may attach your own schedule(s) to report income or loss from any of these sources. Use the same format as on Schedule E. Enter separately on Schedule E the total income and the total loss for each part. Enclose loss figures in (parentheses). Part I Income or Loss From Rental Real Estate and Royalties Use Part I to report:   Income and expenses from rentals of real   estate   (including   personal   property leased with real estate), and   Royalty income and expenses. See the instructions for lines 3 and 4 to determine if you should report your rental real estate and royalty income on Schedule C, Schedule C-EZ,  or Form 4835 instead of Schedule E. If you own a part interest in a rental real estate property, report only your part of the income and expenses on Schedule E. If you have more than three rental real estate or royalty properties, complete and attach as many Schedules E as you need to list them. Complete lines 1 and 2 for each property. But fill in the “Totals” column on only  one  Schedule  E.  The  figures  in  the “Totals” column on that Schedule E should be the combined totals of all your Schedules E. If you are also using page 2 of Schedule E, use the same Schedule E on which you entered the combined totals for Part I. Personal Property. Do not use Schedule E to  report  income  and  expenses  from  the rental of personal property, such as equip- ment or vehicles. Instead, use Schedule C or C-EZ if you are in the business of renting personal property. You are in the business of renting personal property if the primary purpose for renting the property is income or profit and you are involved in the rental activity with continuity and regularity. If your rental of personal property is not a  business,  see  the  Instructions  for  Form 1040, lines 21 and 32, to find out how to report the income and expenses. Filers of Form 1041 If you are a fiduciary filing Schedule E with Form 1041, enter the estate’s or trust’s em- ployer identification number (EIN) in the block for  “Your social security number.” Line 1 For rental real estate property only, show:   The kind of property you rented (for example, brick duplex).   The street address, city or town, and state. You do not have to give the ZIP code.   Your percentage of ownership in the property, if less than 100%. Line 2 If you rented out a dwelling unit that you also used for personal purposes during the year, you may not be able to deduct all the expenses for the rental part.“Dwellingunit” (unit) means a house, apartment, condomin- ium, or similar property. A day of personal use is any day, or part of a day, that the unit was used by:   You for personal purposes.   Any   other   person   for   personal   pur- poses, if that person owns part of the unit (unless rented to that person under a“shared equity” financing agreement).   Anyone in your family (or in the family of someone else who owns part of the unit), unless the unit is rented at a fair rental price to that person as his or her main home.   Anyone who pays less than a fair rental price for the unit.   Anyone under an agreement that lets you use some other unit. Do not count as personal use:   Any day you spent working substan- tially full time repairing and maintaining the unit,  even  if  family  members  used  it  for recreational purposes on that day.   The  days  you  used  the  unit  as  your main home before or after renting it or of- fering it for rent, if you rented or tried to rent it for at least 12 consecutive months (or for  a  period  of  less  than  12  consecutive months  at  the  end  of  which  you  sold  or exchanged it). Check “Yes”  if  you or your family used the unit for personal purposes in 1999 more than the greater of: 1. 14 days, or 2. 10% of the total days it was rented to others at a fair rental price. Otherwise, check  “No.” If you checked  “No,” you can deduct all your expenses for the rental part, subject to the At-Risk Rules and the Passive Activity Loss Rules explained on pages E-3 and E-4. If you checked “Yes” and rented the unit out for fewer than 15 days, do not report the rental income and do not deduct any rental expenses.   If   you   itemize   deductions   on Schedule A, you may deduct allowable in- terest, taxes, and casualty losses. If you checked “Yes” and rented the unit out for at least 15 days, you may NOT be able to deduct all your rental expenses. You can deduct all of the following expenses for the rental part on Schedule E:   Mortgage interest.   Real estate taxes.   Casualty losses.   Other  rental  expenses  not  related  to your use of the unit as a home, such as advertising expenses and rental agents’ fees. If any income is left after deducting these expenses, you can deduct other expenses, including depreciation, up to the amount of remaining income. You can carry over to 2000 the amounts you cannot deduct. See Pub. 527 for more details. Line 3 If  you  received  rental  income  from  real estate  (including  personal  property  leased with real estate) but you were not in the real estate business, report the income on line 3. Include income received for renting a room or other space. If you received services or