Rental property income is not considered wages unless you qualify as a real estate professional.
You qualify as a real estate professional for the
tax year if you meet both of the following requirements.
-
More than half of the personal services you perform in all trades or businesses during the tax year are performed in real
property trades or businesses in which you materially participate.
-
You perform more than 750 hours of services during the tax year in real property trades or businesses in which you materially
participate.
Your rental property should be reported on Schedule E. Are you reporting it on Schedule C because the property is owned by an LLC?
Landlords who own their properties through business entities don’t use
individual Schedule Es to report their rental income or losses.
Instead, the partnership, limited partnership, LLC, or S corporation
files IRS Form 8825,
Rental Real Estate Income and Expenses of a Partnership or an S Corporation, to report the income and deductions from the property owned by the entity. This form is very similar to Schedule E.
Form 8825:
http://www.irs.gov/pub/irs-access/f8825_accessible.pdfFor more information about Form 8825, click the link below:
http://www.irs.gov/uac/Form-8825,-Rental-Real-Estate-Income-and-Expenses-of-a-Partnership-or-an-S-Co...
