The new sole proprietorship, under my name, just became established 4/1/2021. This will be my first filing so there is no history of schedule E, with me. I believe it became a sole proprietorship under my father’s name in 1987, he passed in 1998. My step-mom was sole proprietor until her passing in 2010. My step sister was sole proprietor from 2010 until 3/31/2021, when she sold to me for $1. I established my sole proprietorship with the IRS and NM effective 4/1/2021. The difference is that all 3 previous dba’s had the property solely in their name. When my sister quit claimed the property to me, I turned around and deeded the property into all 3 of us, my step sis, my natural sis, and myself. They want nothing to do with the business so I lease the property for $1 from the JTWROS deed holders. In doing this, I surmised from my own research, that the income was no longer single owner rental income. Rather that it was business income on leased property. I know just enough to be seriously dangerous so don’t 100% trust my interpretations on IRS guidelines. I just want to start off on the right foot.
