Rentl properties use Schedule E to report income and expenses. Businesses use Schedule C.
Generally, Schedule C is used when you provide substantial services (such as a hotel or a Bed and Breakfast) in conjunction with the property or the rental is part of a trade or business as a real estate dealer.
Active participation: You actively participated in a rental real estate activity if you (and your spouse) owned at least 10% of the rental property and you made management decisions or arranged for others to provide services (such as repairs) in a significant and bona fide sense. Management decisions that may count as active participation include approving new tenants, deciding on rental terms, approving expenditures, and other similar decisions.
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