597
The following diagnostic is generating:
Schedule E # {PrefixNum} : Report rental income from personal property on Sch. C not on Sch. E.Solution:
Instructions for Schedule E (Form 1040) page E-5 Personal property. Do not use Schedule E to report income and expenses from the rental of personal property, such as equipment or vehicles. Instead, use Schedule C if you are in the business of renting personal property. If the box is checked, the program assumes the activity is passive and will report it as an other passive activity instead of a real estate activity on the 8582. If this is not correct: 1. Go to Screen 18, Rental & Roaylty Inc. (Sch. E). 2. Check the General Information section to see if Rental other than real estate is checked. 3. If checked, un-check the box, Rental other than real estate. Critical, will not prevent e-file transmission.
