@fsteincpa wrote:
....this has always been my understanding and I am having a disagreemnt with another tax pro on a forum and would love some backup. lol
I am, frankly, not surprised that there is a disagreement considering the following general principle:
If you are a real estate dealer who receives income from renting real property or an owner of a hotel, motel, etc., who provides services (maid services, etc.) for guests, report the rental income and expenses on Schedule C or C-EZ. If you are not a real estate dealer or the kind of owner described in the preceding sentence, report the rental income and expenses on Schedule E.
I would be willing to bet that, at least in part, formed the basis for the other tax pro's position. I have yet to see anything in the Code or Regs that would contradict the italicized language. Except for those exceptions, rental income strictly for the use and occupancy of real property should be reported on Schedule E, at least that would be my position.
Therefore, I would also like a cite that supports the treatment outlined in the previous posts.
