Which schedule must be filed if claiming losses from rental properties?

When claiming losses from rental properties, Schedule E is the appropriate form to use. Schedule E is specifically designed for reporting income and losses from rental real estate, partnerships, S corporations, estates, and trusts. This allows taxpayers to account for their rental income as well as any associated expenses, such as maintenance, repairs, and depreciation, leading to the calculation of their net rental income or loss.

For individuals who engage in rental activities, the use of Schedule C, which is related to business income and expenses, is not appropriate since rental activities are typically not classified as a business unless they qualify as a real estate business. Schedule A is intended for itemized deductions, such as personal expenses, rather than for rental income or losses. Lastly, Schedule D is utilized for reporting capital gains and losses, and is not applicable to rental activity.

Therefore, the correct schedule for reporting losses incurred from rental properties is Schedule E, as it accurately reflects the nature of rental income and allows for the necessary deductions related to those properties.