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Investors & landlords
No, remodeling does not count with respect to providing substantial services.
See https://www.irs.gov/publications/p527#en_US_2020_publink1000234065
Providing substantial services.
If you provide substantial services that are primarily for your tenant's convenience, such as regular cleaning, changing linen, or maid service, you report your rental income and expenses on Schedule C. Use Form 1065, U.S. Return of Partnership Income, if your rental activity is a partnership (including a partnership with your spouse unless it is a qualified joint venture). Substantial services don’t include the furnishing of heat and light, cleaning of public areas, trash collection, etc.
October 25, 2022
9:27 PM
1,627 Views