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USA Tax Glossary
Form 8825 is used by partnerships and S corporations to report rental real estate income and deductible rental real estate expenses.
Investor Context
If a rental property is owned through a partnership, multi-member LLC taxed as a partnership, or S corporation, rental activity may be reported at the entity level on Form 8825 before passing through to owners.
Why It Matters
It keeps entity-owned rental activity separate from personally owned Schedule E rentals.
It supports Schedule K-1 reporting to partners or shareholders.
The IRS updated Form 8825 reporting for tax years beginning in 2025, including new treatment for certain other expense reporting.
Records To Prepare
Property-by-property rent and expense detail
Entity books and chart of accounts
Depreciation records and fixed asset reports
Partner or shareholder ownership information
Common Caution
Form 8825 is for rental real estate inside partnerships and S corporations; individual owners with directly held rentals commonly use Schedule E instead.
Direct Answers
Partnerships and S corporations use Form 8825 to report rental real estate income and deductible expenses.
No. Form 8825 reports rental real estate activity at the entity level; Schedule K-1 reports each owner share of pass-through items.
Official IRS Reference
IRS: About Form 8825Related Terms
Form 1065 is the U.S. Return of Partnership Income. A partnership files it as an information return to report income, gains, losses, deductions, and credits.
Schedule K-1 reports an owner share of income, deductions, credits, and other tax items from a pass-through entity such as a partnership or S corporation.
Form 1120-S is the U.S. Income Tax Return for an S Corporation. It reports S corporation income, deductions, credits, and shareholder pass-through items.
