How to file for an LLC with rental income that also has equipment and other expenses under it.

[j_nash]

I have an LLC that I have rental property under. I originally filed previous years under Schedule E. This year I have equipment (snow plowing, backhoe, etc) for services at the properties. I wanted to write off these purchases and depreciation. I also wanted to use this equipment under the LLC to provide external services (contract work, plowing, earthwork for income - not just for my rental property). When checking the box during tax returns if I provide 'substantial services' (such as AirBnB), I do not.  How do I file write offs for the equipment (Purchases/depreciation) and operating expenses along with the rental income? The majority of the income will be from rents with little from actual excavation/snow removal. I mainly just want to write this equipment off as it's used at the rental properties. Everything keeps steering me towards Schedule E due to the rental income. 

[AmeliesUncle · Accepted solution]

Assuming this is a Single Member LLC that has NOT made an election to be taxed as a corporation, just ignore the LLC for income tax purposes.

You report your rentals on Schedule E.  Under the rental properties, you depreciate the equipment by using the business percentage that applies to the rental property.

You also seem to have a new business of excavation and snow removal.  That business goes on Schedule C.  You depreciate the equipment by using the business percentage that applies to the excavation/snow removal business.