I own a building with two relatively equal spaces. One portion is used by my laundromat and the other portion is leased as a restaurant. The lease to the restaurant accounts for about 25% of the total income from the property. Since getting flagged for audit due to my operating numbers not being consistent with a leased laundromat operation, I have been reporting rent paid to myself and rent collected from the restaurant along with all the building expenses on a Schedule E. Can I just report everything on my Schedule C? The main reason for wanting to do this is to claim the income as active income for SEP contribution purposes.
Thank you.
