I guess I should make it clear that for my personal properties I do not want to use a Schedule C I want to continue to use the schedule E.
Bottom line here.
Income from residential rental property is reported on SCH E *no* *matter* *what*. For a multi-member LLC (which files an IRS Form 1065 Partnership Return) it's reported on SCH E as a part of the 1065 return. The partnership will then issue each partner a K-1 that each partner will use to complete their personal 1040 tax return. (doesn't matter if it's a 1040 joint return either). All the rental stuff from the K-1 will end up on page 2 of the SCH E on the 1040 personal return.
From the sounds of it I can do that.
It's not like you have a choice in the matter, because you don't.
My other question is I do babiy sit and I do have to fill out a schedule C for, it is for mentally disabled individuals and New York state pays me. Would my Ein have to go on the schedule C which I fill out for that? I know your experience is in rental so you might not know the answer for that question.
Babysitting/care provider income is earned income. (unlike rental income which is passive income). So it gets reported on SCH C as a part of your personal tax return, assuming *YOU* are the *ONLY* owner of the babysitting/care provider business.
Assuming you registered the EIN as a baby sitting service or some kind of care provider, then the EIN is used on the SCH C where you will report that specific income. Overall, how you registred the EIN really doesn't matter "all that much", because the IRS could actually care less - so long as you report your business income and pay your taxes on it. Note that with the SCH C income, in addition to the "regular" income tax you will pay, you will also pay the additional 15.3% self-employment tax on that specific income too.
It's also possible the provider income might be exempt from reporting and taxes too, since the state pays it to you. But I don't know how that works in NY since I'm not at all familiar with NY state tax laws. You might want to ask a tax professional in that state if you need to even report it, and if so is it actually taxable income. I myself wouldn't have a clue on that.
