@Carl wrote:
It is not common for long term residential rental real estate to qualify as a SCH C business, as it can be very difficult to meet the requirements to qualify as a SCH C business. For a "down to earth" explanation, see https://www.landlordstudio.com/blog/schedule-c-vs-schedule-e
Some of the information on that web site is woefully inaccurate; it should not be cited. For example, it is stated that:
For investors with multiple rental properties Schedule C might be the right choice if you qualify for the real estate professional status.
The foregoing statement is misleading and mostly false. Real estate professionals typically report on Schedule E and never report on Schedule C unless they provide significant services to renters or are real estate dealers.
The information on the site could also lead users to believe that all losses reported on Schedule E are passive, which is not true.
