So to get the 27.5 yr depreciation I need to set up on a Schedule E? I asked a CPA about this since my cottage (now private use) used to be rented out as a B&B (schedule E) and he said I needed to switch my new rental to Schedule C business. I have no idea what is correct. I manage other B&Bs for other people under a management company and report that as business income on Schedule C.
CPA said something about offering additional services to be a business. If I offer additional services under my management Company (websites offers links to things to do /purchase), I was thinking I could put property under Schedule E like you recommend and the service part would be tied to my managment company. Right now I charge clients 25% of rentals to manage property, but have not charged my own property since I own both. Should I just start paying my management company a 5-10% to cover services of my rentals and only that part of the income would be subject to SS and medicare?
THANK YOU!
