Schedule E or C

Forum|Forum|7 years ago
June 5, 2019
1 reply
1 view

I currently have a rental property that I rent out to the County where I live (transitional living for the homeless). I received a 1099 from them. Per our contract, I provide 2 meals a day and basic toiletries. As, well as furnish the house and pay all utilities. Do I claim this on a Schedule E or C? The rules under Schedule E say that I should file on C if I provide substantial services?

TurboTax Self Employed Online

DianeW777

Level 15

If you consider the time you spend providing these services to the customer, then you might be considered a real estate professional.

To be a real estate professional, a taxpayer must provide more than one-half of his or her total personal services in real property trades or businesses in which he or she materially participates and perform more than 750 hours of services during the tax year in real property trades or businesses.

If you decide that you fall into this category then you should report your income and expenses on Schedule C, if not you can report them on Schedule E.

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