M-MTax
Level 12

Investors & landlords

Even if you do form an LLC, all the income is still passive and still ends up reported on SCH E 

Not at all true......... @sidekickin said the rental was farm equipment which is not real estate.

Personal property.

Do not use Schedule E to report income and expenses from the rental of personal property, such as equipment or vehicles. Instead, use Schedule C if you are in the business of renting personal property.