Good morning My name is Ken and I live in California.

Forum|Forum|6 years ago
March 16, 2020
1 reply
16 views

Where do you enter income from sublet ing office space

TurboTax Self Employed Online

Best answer by JamesG1

Subleasing income is rental income and is reported on Schedule E. It is not subject to self-employment tax.

Business income is reported on Schedule C and is subject to self-employment tax.

So if you report the rental income on Schedule E you will need to allocate your office rent between the Schedule E activity and the Schedule C activity.

As an example, your monthly office rent is $5,000 and you are subleasing 20% of your office space. You should allocate 20% of your monthly office rent or $1,000 to the Schedule E and 80% of your monthly office rent or $4,000 to Schedule C.

JamesG1Answer

Level 15

Subleasing income is rental income and is reported on Schedule E. It is not subject to self-employment tax.

Business income is reported on Schedule C and is subject to self-employment tax.

So if you report the rental income on Schedule E you will need to allocate your office rent between the Schedule E activity and the Schedule C activity.

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