U. S. Business Income Tax Return

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Instructions for Form 8825
(December 2025)

Rental Real Estate Income and Expenses of a Partnership or an S Corporation
Section references are to the Internal Revenue Code
unless otherwise noted.

Future Developments
For the latest information about developments related to
Form 8825 and its instructions, such as legislation
enacted after they were published, go to IRS.gov/
Form8825.

What’s New

Line 1. Line 1 was expanded to include a new column to
enter codes to provide additional information relating to
gain or (loss) associated with acquisitions, dispositions, or
other transactions.
Line 2. Line 2 was expanded to provide separate
reporting of rental real estate gross rents and other
income related to rental real estate activity.
Line 15. The entry space for line 15 was designated as
lines 15 through 17 to allow reporting from the new
Schedule A (Form 8825), Rental Real Estate Other
Deductions. This reporting is only required for
partnerships and S corporations that have an M-3 filing
requirement. Subsequent lines have been renumbered.

General Instructions
Purpose of Form

Partnerships and S corporations use Form 8825 to report
income and deductible expenses from rental real estate
activities, including net income (loss) from rental real
estate activities that flow through from partnerships,
estates, or trusts.
Before completing this form, see Passive Activity
Limitations in the instructions for Form 1065 or Form
1120-S, especially for the definition of “rental activity.”

Specific Instructions
If you have more than four rental real estate properties,
page 2 of Form 8825 has been redesigned to allow four
additional entries. Complete and attach as many
additional pages needed to list all your rental real estate
properties. Complete lines 1 through 19 for each property.
Complete lines 20a through 23 on page 1 only once. The
figures on lines 20a and 20b should be the combined
totals from all pages.
Sep 4, 2025

However, if the partnership or S corporation has more
than one rental real estate activity for purposes of the
passive activity limitations, attach a statement to
Schedule K that reports the net income (loss) for each
separate activity. Also, attach a statement to each
Schedule K-1 that reports each partner’s or shareholder’s
share of the net income (loss) by separate activity. See
Passive Activity Reporting Requirements in the
instructions for Form 1065 or 1120-S for additional
information that must be provided for each activity.
Don’t report on Form 8825 any of the following.

• Income or deductions from a trade or business activity
or a rental activity other than rental real estate. These
items are reported elsewhere.
Portfolio income or deductions.
Section 179 expense deduction.
Other items that must be reported separately to the
partners or shareholders.
Commercial revitalization deductions.

•
•
•
•

Line 1

For each property in column (a), enter the street address,
city or town, and ZIP code. If the property is located
outside the United States, enter the postal code and
country. Specify the type of property by entering one of
the following codes in column (b).
.
Allowable Codes for Type of Property
1—Single-family residence
2—Multi-family residence
3—Vacation or short-term rental
4—Commercial
5—Land
6—Royalties
7—Self-rental
8—Other (include description with the code on Form 8825 or on a
separate statement)

Note: Column (c) is only required for partnerships and S
corporations that have a Schedule M-3 filing requirement.

Instructions for Form 8825 (12-2025) Catalog Number 95544V
Department of the Treasury Internal Revenue Service www.irs.gov

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Which version to use. For tax years beginning in 2025,
use the December 2025 revision of Form 8825. Use the
November 2018 revision of Form 8825 for tax years
beginning in 2018. Use prior revisions of this form for
earlier tax years. All revisions are available at IRS.gov/
Form8825.

The number of columns to be used for reporting income
and expenses on this form may differ from the number of
rental real estate activities the partnership or S
corporation has for purposes of the passive activity
limitations. For example, a partnership owns two
apartment buildings, each located in a different city. For
purposes of the passive activity limitations, the
partnership grouped both buildings into a single activity.
Although the partnership has only one rental real estate
activity for purposes of the passive activity limitations, it
must report the income and deductions for each building
in separate columns.

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For each property, in column (c), provide any applicable
other information outlined by the following codes.
Allowable Codes for Other Information
A—Nontaxable contribution (sections 721 and 351)
B—Other exchange (sections 1031, 1033, etc.)
C—Taxable acquisition (section 1012)
D—New construction/renovation or other basis addition/subtraction
E—Reserved for future use
F—Nontaxable distribution (section 731)
G—Taxable disposition (section 1001 gain/loss)
H—Abandonment
I—Other/supplement

For each property, enter the number of days rented at
fair market value in column (d) and number of days with
personal use in column (e). For details, see section 280A.

Line 8—Interest

Line 14—Depreciation

The partnership or S corporation may claim a depreciation
deduction each year for rental property (except for land,
which is not depreciable). If the partnership or S
corporation placed property in service during the current
tax year or claimed depreciation on any vehicle or other
listed property, complete and attach Form 4562,
Depreciation and Amortization. See Form 4562 and its
instructions to figure the depreciation deduction.

2

For partnerships and S corporations with a Schedule M-3
filing requirement, complete and attach Schedule(s) A
(Form 8825) for each property listed on Form 8825.
Paperwork Reduction Act Notice. We ask for the
information on this form to carry out the Internal Revenue
laws of the United States. You’re required to give us the
information. We need it to ensure that you are complying
with these laws and to allow us to figure and collect the
right amount of tax.
You aren’t required to provide the information requested
on a form that’s subject to the Paperwork Reduction Act
unless the form displays a valid OMB control number.
Books or records relating to a form or its instructions must
be retained as long as their contents may become
material in the administration of any Internal Revenue law.
Generally, tax returns and return information are
confidential, as required by section 6103.
The time needed to complete and file this form will vary
depending on individual circumstances. The estimated
burden for business taxpayers filing this form is approved
under OMB control number 1545-0123 and is included in
the estimates shown in the instructions for their business
income tax return.
If you have comments concerning the accuracy of
these time estimates or suggestions for making this form
simpler, we would be happy to hear from you. See the
instructions for the tax return with which this form is filed.

Instructions for Form 8825 (Dec. 2025)

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Your interest expense may be limited. See the Instructions
for Form 8990, Limitation on Business Interest Expense
Under Section 163(j), for more information.

Line 17—Other Deductions