1099-K issued to EIN filed on Schedule E

[pbmunkey]

My EIN was issued a 1099-K for my rental income. I wish to file a schedule E but when choose rental income "Business income reported to you on Form 1099-K, it only allows me to choose myself or my spouse under "This 1099-K is for:".  How to select my EIN?

2022 Home & Biz MAC

[JamesG1]

Has the EIN been issued to an LLC created under your state's laws?  If so, is it a sole member LLC or more than one member?

Have you filed IRS form 8832 to affirmatively elect that the LLC be treated as a corporation?

Please clarify.

This IRS website states:

For income tax purposes, an LLC with only one member is treated as an entity disregarded as separate from its owner, unless it files Form 8832 and affirmatively elects to be treated as a corporation. 

The LLC is a disregarded entity unless you have filed IRS form 8832 and affirmatively elect to be treated as a corporation.

If the LLC is a disregarded entity, that means that you file the income on your personal Federal 1040 tax return.

[Edited 2/1/2023 | 3:35 pm PST]

@pbmunkey 

[Carl]

If the LLC is a disregarded entity, that means that you file the income on Schedule C of your personal Federal 1040 tax return and report the EIN number on Schedule C.

When it comes to long term residential rental real estate, that's backwards. A single member LLC is considered a disregarded entity by the IRS, meaning that income earned by the LLC is considered as having been earned by the owner of that LLC personally. (Because it was).

Typically, rental property does not deal with "earned" income. Only passive income. (There are exceptions, and so far they don't apply to this situation.) Long term residential rental real estate is reported on SCH E with no exceptions that apply so far, in "THIS" thread. More information is needed as requested above. Also, it would help to know what boxes on the 1099-K have numbers in them. Maybe tax was withheld and indicated in box 4 and/or 8?

[pbmunkey]

It’s actually just a sole proprietor. I have multiple rentals that i airbnb. I had been receiving 1 1099-k for all of my payouts from airbnb. I would split the 1099-k into multiple schedule E’s. I was told that this isn’t ideal. To keep them separate, I created an ein for each home so that I can receive a separate  1099-k  for each property. 

@JamesG1 @Carl 

[Carl]

It’s actually just a sole proprietor. I have multiple rentals that i airbnb

Are you "in the business" of providing short term rentals as your primary source of income? Do you provide services that are directly beneficial to your short term tenants? I ask, because if you do, what you have "may" qualify as a SCH C business. But as it stands now, you would enter the K-1 data on SCH E with the SSN that is tied to the EIN, and you'd be fine.

Since and EIN must be tied to an SSN and EIN's are only issued by the IRS, they already know what SSN and EIN go together. So using your SSN in place of the EIN shouldn't be a problem. It never has been for me in the 30 years or so I've been a landlord.

I myself have an EIN for my three rentals that I use when I issue tax documents (such as a 1099-NEC) in the payor's box, to contractors. That way, they don't get my SSN. A renter also doesn't need either my SSN or EIN to pay the rent, as I don't use a third party for that anyway.

[pbmunkey]

Thank you for clarifying. 

I have filed my rentals as a Schedule C in the past but, tax wise, I feel that the Schedule E saves me on taxes (i think it's self employment tax).  Is there something about a schedule C that would make it better than a Schedule E?  

Unrelated from the topic above, I do file a Schedule C because I manage a property for someone. I collect all payments and disburse them a portion of the net income.  Airbnb sends out one 1099-K to me and I want to split it up into 3 schedule E’s and 1 schedule C. (1 different schedule E for each of the properties I own) 

Someone said to claim all of the 1099-K from airbnb on my Schedule C and file a separate 1099 for each property that I own. What are your thoughts

@Carl 

[Carl]

 I do file a Schedule C because I manage a property for someone. I collect all payments and disburse them a portion of the net income.  Airbnb sends out one 1099-K to me and I want to split it up into 3 schedule E’s and 1 schedule C. (1 different schedule E for each of the properties I own) 

So you are "in the business" of property management. That should be reported on SCH C. For the rentals you own, those "could" be reported on SCH E. But if you've been including them on the SCH C, changing things now is not simple by any stretch of the imagination.

Someone said to claim all of the 1099-K from airbnb on my Schedule C and file a separate 1099 for each property that I own. What are your thoughts

Is all of the income on the 1099-K from property you manage and report on SCH C? Or is it mixed with property you own and report on SCH E? If the latter, I'm not knowledgeable enough on that front to be of any real help. Any "help" I offered would be pure speculation and I wouldn't trust it at all. All I can say for sure, is that you have what appears to be a really difficult tax issue. I suspect your biggest boo-boo was taking actions on the tax front because "someone said". I myself am not a tax expert. Just another tax payer same as you. In other words, I'm one of those "someone's"

You may find it in your best financial interest in the long run to seek professional help - at least for the current tax year to get yourself straight. Especially if your state taxes income, as doing things wrong when state taxes are involved can turn into a double-whammy.

[Carl]

 I do file a Schedule C because I manage a property for someone. I collect all payments and disburse them a portion of the net income.  Airbnb sends out one 1099-K to me and I want to split it up into 3 schedule E’s and 1 schedule C. (1 different schedule E for each of the properties I own) 

So you are "in the business" of property management. That should be reported on SCH C. For the rentals you own, those "could" be reported on SCH E. But if you've been including them on the SCH C, changing things now is not simple by any stretch of the imagination.

Someone said to claim all of the 1099-K from airbnb on my Schedule C and file a separate 1099 for each property that I own. What are your thoughts

Is all of the income on the 1099-K from property you manage and report on SCH C? Or is it mixed with property you own and report on SCH E? If the latter, I'm not knowledgeable enough on that front to be of any real help. Any "help" I offered would be pure speculation and I wouldn't trust it at all. All I can say for sure, is that you have what appears to be a really difficult tax issue. I suspect your biggest boo-boo was taking actions on the tax front because "someone said". I myself am not a tax expert. Just another tax payer same as you. In other words, I'm one of those "someone's"

You may find it in your best financial interest in the long run to seek professional help - at least for the current tax year to get yourself straight. Especially if your state taxes income, as doing things wrong when state taxes are involved can turn into a double-whammy.

[pbmunkey]

I manage 4 SFR properties on airbnb. 3 properties are owned by me. 1 property is belongs to someone else which I 1099 them a portion of the net income at the end of the year. I receive one 1099K from airbnb for everything that was paid out to my account. I hope that clears things up

[pbmunkey]

It's a sole proprietor, not LLC. 

[AliciaP1]

If your intent is to make a profit by renting the multiple properties and offering property management services to another client, then all of your efforts translate into your being self-employed and all the properties' income and expenses should be reported on Schedule C.  

You are self-employed if you’re an individual who:

• Is the sole proprietor of an unincorporated business
• Works as an independent contractor, consultant, or freelancer
• Is a member of a business partnership
• Owns or is part of a limited liability company (LLC)
• Earns income through investments
• Earns income through rental property

You may not think of yourself as running a business, but you’re considered self-employed if you engage in business-like activities.

Business activities include any activity where you:

• Intend to make a profit (even if you operate at a loss)
• Have regular transactions or production of income
• Make ongoing efforts to sustain, grow, or further the interests of your business

There is an additional benefit in that if a property has a loss for a period, that loss can offset other properties' income with many fewer, if any, limitations to consider.  

See Should I report on Schedule E or Schedule C for more information.

@pbmunkey