Which schedule must Wes include with Form 1040 for his rental property?

In the context of reporting income and expenses related to rental property on individual tax returns, Schedule E is the appropriate form to use. This schedule is specifically designed for reporting supplemental income or loss, including rental income, k-1 income from partnerships, S corporations, estates, and trusts.

When Wes has rental property, he needs to report the income generated from it as well as any associated expenses, such as maintenance, repairs, property management fees, and mortgage interest. These details are captured on Schedule E, which ultimately flows through to the main Form 1040.

Using the wrong schedule would not accurately reflect the nature of the income or adhere to IRS requirements. Thus, opting for Schedule E ensures that Wes properly complies with tax regulations and accurately reports his rental income.