My wife and I manage vacation rentals for property owners. What would we choose as our Business activity code? Also, how should we report the income and expenses? Thanks.

[bmseelos]

We manage the rentals for the owners. The income flows through us and we collect our commission, pay expenses, and pay out the owners monthly. It is setup as an llc.

[MarilynG]

If you and your wife are the only members of the LLC, you can report your Business Income and Expenses on Schedule C and choose 'Property Management' as your Business Activity.

The actual Property Owners will report their Rental Income and Expenses (such as your fees) on Schedule E in their return.

Click the link for a detailed article on Reporting Business Income and Expenses you may find helpful.