We rented out our basement for 7 months. It consumes 27% of our total usable space. The amount charged was about 1/3 of our mortgage. Seems that IRS TC414 states that when you are not in the business of renting, but have rented temporarily a space that is yours, you can fill in the 'income' on line 21, and the 'expense' on line 36, but no further direction is given.
Your income and expenses for renting out your basement most likely go on schedule E.
If you provide "substantial services" to your guests such as regular cleaning, changing linens, or maid service, you can report this on schedule C. Think hotel owners.
Typical basement rentals go on schedule E.
An example of a "personal property rental" that would be reported on line 21 and 36, is if you rented a vehicle or equipment that you own. Real estate is not considered "personal property."
Your income and expenses for renting out your basement most likely go on schedule E.
If you provide "substantial services" to your guests such as regular cleaning, changing linens, or maid service, you can report this on schedule C. Think hotel owners.
Typical basement rentals go on schedule E.
An example of a "personal property rental" that would be reported on line 21 and 36, is if you rented a vehicle or equipment that you own. Real estate is not considered "personal property."