Which form is used for reporting income from rental properties?

The correct option is Schedule E, which is specifically designed for reporting income and expenses related to rental properties and other types of real estate. When individuals earn income from renting out residential or commercial properties, that income, along with the associated expenses such as mortgage interest, property taxes, repairs, and depreciation, are reported on Schedule E. This form allows property owners to detail their income and expenses clearly, which then gets summarized and transferred to their Form 1040.

Other forms listed serve different purposes: Schedule A is used for itemizing deductions, such as medical expenses and charitable contributions; Schedule C is primarily for reporting income and expenses from self-employment, focusing on individual business income; and Form 1040 serves as the main tax return for individual taxpayers but does not specifically break down rental income and expenses. Therefore, Schedule E is the most appropriate choice for reporting income from rental properties.