You can't use Schedule C for rentals unless you also provide a service. A bed and breakfast qualifies because they serve meals. A motel qualifies since they provide maid service. A straightforward rental does not.
If I understand correctly, you want to take your loss on Schedule E but your AGI is too high. Only RE professionals are allowed to do this. While the second qualification is doable if you have a job, it is very unlikely that you would meet the first.
Qualifications. You qualified as a real estate professional for the year if you met both of the following requirements.
• More than half of the personal services you performed in all trades or businesses during the tax year were performed in real property trades or businesses in which you materially participated.
• You performed more than 750 hours of services during the tax year in real property trades or businesses.
In a number of court cases, individuals who worked full time in a non-real estate activity were unable to meet the requirements to be a real estate professional. Proving that at least 50% of the taxpayer's personal services during the tax year are performed in rental real property trades or businesses may be very difficult to establish for an individual who is employed for significant hours in a non-real estate business.
RE Professional
