Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
allan15
New Member

1099 Misc, Is Rental income considered a "service" being filed as business income or not a service filed as personal?

 
1 Best answer

Accepted Solutions
PatriciaV
Expert Alumni

1099 Misc, Is Rental income considered a "service" being filed as business income or not a service filed as personal?

It depends on the source of the Rental Income.

If you rent out a property to third parties and provide no personal services (like a hotel does), the income is reported on Schedule E as Rental Income. This income is not subject to self-employment taxes, as rental activity is not considered a "business."

If, however, you provide services to your guests (regular cleaning, changing linen, or maid service), you would report this income on Schedule C as Business Income. This income would be subject to self-employment taxes.

There are other types of rental income that are not associated with renting to others (a bonus on mineral rights, for example) that are typically reported on Schedule E.

View solution in original post

1 Reply
PatriciaV
Expert Alumni

1099 Misc, Is Rental income considered a "service" being filed as business income or not a service filed as personal?

It depends on the source of the Rental Income.

If you rent out a property to third parties and provide no personal services (like a hotel does), the income is reported on Schedule E as Rental Income. This income is not subject to self-employment taxes, as rental activity is not considered a "business."

If, however, you provide services to your guests (regular cleaning, changing linen, or maid service), you would report this income on Schedule C as Business Income. This income would be subject to self-employment taxes.

There are other types of rental income that are not associated with renting to others (a bonus on mineral rights, for example) that are typically reported on Schedule E.

Dynamic AdsDynamic Ads
Privacy Settings
v