What is reported in Part II of Schedule E for a taxpayer?

Part II of Schedule E is specifically designed to report income or losses from partnerships, S corporations, estates, trusts, and residual interests in REMICs (Real Estate Mortgage Investment Conduits). When a taxpayer is involved in a partnership, they will need to report their share of the partnership's income or loss on this section of Schedule E. This allows the IRS to track the taxpayer's income from business activities that flow through from partnerships to individual returns.

This section differs from other reporting areas for tax credits, dividend income, or capital gains because those items are typically reported on other forms or sections of a tax return. By focusing on partnership income or loss, Part II of Schedule E helps ensure that the individual taxpayer accurately reflects their share of the financial activity of any partnerships in which they participate.