This year 2022 has a new caveat. It has come to my attention the necessity for determining whether a landlord of rental property is a "Merchant" as some online payment processing companies are labeling us with because we are using the same platform as vendors do which is described as in the business of goods and services and will issue 1099-K if over 600.00 was transmitted to a person. This issue is you can't report a1099-K on schedule E for one and the 1099-K can contain monies for non income purposes too like Refundable Deposits in Trust that IRS says not to include in income unless you have made a material deduction for which you have incurred an expense. 1099-K is associated with being in "Business" and reporting on schedule C. Another thing to consider along with the rest in reporting passive income vs earned income.
Non Merchant is:
1) Dealing in Real Property (apposed to movable property/goods)
2) Does not supply "Services" as in Meal, Shuttle, Maid, laundry services; Including utilities is not a service
3) Is not considered "transient" accommodations called "Short Term" which is in the same business class as hotels and BNB's (rents for 29 or less nights, vs month to month).
