MFJ under filing threshhold, but

[carolf]

Taxpayers are under the filing threshhold, but they have rental income. It seems to me that they would still have to file a return. Correct?

I can't find anything regarding this situation.

Thank you!

[DaveO]

If gross income is over the filing threshold they will have a filing obligation.

[spanel]

Taxpayers are under the filing threshhold, but they have rental income. It seems to me that they would still have to file a return. Correct?

I can't find anything regarding this situation.

Thank you!

Also they may have a state filing obligation even though no federal.

chris

[taxmom34]

I thought it was the same as self employed income over $400 gross.

[taxea]

you need to file a 1040 with a Sch E. There should be depreciation items etc that carryover from year to year.

[Roland Slugg]

A taxpayer does NOT have to file a return just because he has rental income and there would be a Schedule E in his return. The IRS instructions (on page 7) very clearly set forth the filing requirements. In most cases it's based on "gross income," and that varies according to the filing status. When figuring gross income for "do I have to file" purposes, the total rents reported on line 3 of Schedule E are counted, but the expenses (including depreciation) are not. There are, of course, situations when the filing of a return is required that fall outside the normal "gross Income" levels ... $400 in S-E income being one of them.

If a taxpayer is not required to file, he must still calculate depreciation the same as always, and he must also track his PAL carryovers.

[taxea]

I thought it was the same as self employed income over $400 gross.

I believe that rule applies to Sch C. The IRS does not consider rentals a business.