A MOVIE COMPANY RENTED OUR BACKYARD TO USE FOR FILMING. HOW DO I REPORT IT?

[AlanT222 · Accepted solution]

There is a special rule if you use a dwelling unit as a personal residence and rent it for fewer than 15 days.  When this is the case, do not report any of the rental income and do not deduct any expenses as rental expenses.

However, if you rented the back yard for 15 days or more, then you would treat it like a regular rental. You would report the income on Schedule E.