A form to report income from washer and dryer

[erikkari]

Hi,

Trying to figure out which form to use to report income from the coin operated washer and dryer (both are located in the basement of the multi-family property). I would think it would go under Misc Income but do not want to take any guesses.

Thanks and Regards,

Erik

[SusanY1 · Accepted solution]

Add the income, as well as the expenses for producing it (repairs, utilities, etc.) to the rental income and expenses for your property in the Rental Income & Expense section of TurboTax.  

In your own records, keep a separate accounting of what is rent form tenants, etc. and what is the rental income from the washer and dryer but they can be put together on the same Schedule E for tax purposes. 

[erikkari]

Thank you Susan. Does that mean both the washer and the dryer cannot be depreciated for tax return purposes?

[SusanY1]

No, they can be depreciated, as assets included on your Schedule E.  To set this up in TurboTax, just add them as assets in the Assets section of the Rental Income & Expense section.  They will have their own depreciation schedules, but the depreciation expense will be combined with your other depreciation expense on your tax return.  

[Carl]

When it comes to rental property, any income received from any source for any reason is rental income. Period. End of story. You include it as part of the rental income received.

If a multi-unit property and you report each unit separately in TurboTax, it's common to spread the washer/dryer income as equally as possible across all units.

It's also possible and acceptable to treat the washer/dryer as their own physically separate rental unit. You are in fact, "renting" them out on a per-load basis. It's also possible you don't limit their use to tenants only. So it's perfectly acceptable to treat the washer/dryer as a physically separate rental business. It still gets reported on SCH E though.

[AmeliesUncle]

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@Carl wrote:

It's also possible and acceptable to treat the washer/dryer as their own physically separate rental unit. You are in fact, "renting" them out on a per-load basis. It's also possible you don't limit their use to tenants only. So it's perfectly acceptable to treat the washer/dryer as a physically separate rental business. It still gets reported on SCH E though.

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If the rental of the use of the machines are separate from the rental of the property, it would go on Schedule C.  

But it seems like the machines are only for the tenants and are so closely related to the rental of the property, I would probably just include it as part of the income for the property rental on Schedule E.

[erikkari]

Thank you all for your answers! The machines are only used by tenants. Looks like Sch E is the way to go and that's how I have just reported it.

Thanks again.