We need to modify our prior response. Your rental income and expenses get reported on Schedule E Supplemental Income and Loss. There are situations where your rental income would be reported on Schedule C Profit or Loss From Business, such as, if you meet the definition of a real estate professional. According to the IRS, a real estate professional must satisfy both of the following requirements:
- More than half of the personal services you perform in all trades or businesses during the tax year are performed in real property trades or businesses in which you materially participate.
- You perform more than 750 hours of services during the tax year in real property trades or businesses in which you materially participate.
Thus, unless you meet the definition of a real estate professional, report your rental income and expenses on Schedule E Supplemental Income and Loss.
@nzamaray
[Edited 1-25-23 | 7:36am PST]
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