TomD8
Level 15

Investors & landlords

Yes, income from a sublease is rental income, generally reportable on Schedule E.  The IRS says to report it on Schedule C "when you provide substantial services in conjunction with the property or the rental is part of a trade or business as a real estate dealer."

https://www.irs.gov/publications/p527#en_US_2018_publink1000219119

 

You'll also find the IRS definition of "substantial services" in that IRS reference.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.