ProConnect HelpIntuit HelpIntuit

Common questions for Form 8825 in ProSeries

by Intuit•2• Updated a day ago

What's new for tax year 2025?

For tax year 2025 the IRS has released a new Schedule A (Form 8825). If you’re a partnership or S corporation that is required to file Schedule M-3, you must use new Schedule A (Form 8825), Rental Real Estate Other Deductions, to report other deductions and include the total amount on Form 8825, line 17.

1065 gain or loss from sale of business rental property doesn't flow to 8825:

There's a gain or loss from the sale of business rental real estate property, which should flow to Form 8825, line 19. Instead, the gain or loss is flowing to Form 1065, line 6.

You must enter the amount from the gain or loss that is attributable to business property used in rental real estate activities on the 8825 Worksheet line 18. This amount will then flow to Form 8825, line 19, and it will no longer report on Form 1065, line 6.

How to generate the 8825 Schedule A starting in tax year 2025?

  1. Open the 8825 Worksheet.
  2. Scroll down to the Line 17 Other Deductions Smart Worksheet.
  3. Enter the deductions on the applicable lines.
    • If the M-3 is required to be filed ProSeries will generate the 8825 Schedule A.
    • If the M-3 is not required to be filed the deductions will show on line 17 without generating the Schedule A.

You reported a gain (or loss) from the sale of business property of zero. If any portion of this gain (or loss) is from rental real estate activities, you must also enter it on Form 8825, Rental Real Estate Income and Expenses, Line 19.

To resolve this diagnostic, enter the amount that appears on Form 4797, Part 2, line 17, onto Form 8825 Rental Real Estate Income and Expenses Worksheet.

ProSeries Professional
Dynamic AdsDynamic Ads