I seem to be getting conflicting answers. If I go through the process like @JohnB5677 says, it requires a physical address of the equipment as if that address is rental real estate. The address where the equipment is currently located in Oklahoma is not rental real estate. It is the address of the business I am renting the equipment to. However, the equipment moves around the state during the year as needed. To be clear, I do not materially participate in this activity, so it is not a business. I simply own the equipment and the business that is renting it takes care of all maintenance, upkeep, repairs, and insurance. According to the Form 1040 instructions, it says that rental of tangible personal property that is not conducted as a business should be reported on Schedule 1:
Line 8k (pg 87 of IRS Form 1040 instructions)
Income from the rental of personal
property if you engaged in the rental
for profit but were not in the business
of renting such property. Also see the
instructions for line 24b (Schedule 1), later.
Line 24b (pg 94 of IRS Form 1040 instructions)
Enter the deductible expenses related to
income reported on line 8k (Schedule 1) from the
rental of personal property engaged in
for profit.
Do you still think this income should be on Schedule E even though the IRS instructions state otherwise? How do I show depreciation expenses on line 24b of Schedule 1? (It is 5-year depreciable equipment.) Since there is not a steady physical address for the equipment, is the income still taxable in Oklahoma?
Apparently, this is a very uncommon tax situation. I just want to make sure I am reporting this correctly since this is the first year.
