Is it better to report rental income as "self employment income" or under "rental properties and royalties Sch E"?

[MichaelDC]

Rental income is normally reported under "rental properties and royalties on Schedule E." Generally, Schedule C is used when you provide substantial services in conjunction with the property or the rental is part of a trade or business as a real estate dealer.

If you have additional questions or details regarding this, please feel free to post in the comments for further clarification.

According to the IRS:

"If you provide substantial services that are primarily for your tenant's convenience, such as regular cleaning, changing linen, or maid service, you report your rental income and expenses on Schedule C (Form 1040), Profit or Loss From Business, or Schedule C-EZ (Form 1040), Net Profit From Business. Substantial services don’t include the furnishing of heat and light, cleaning of public areas, trash collection, etc.

For information, see Pub.334, Tax Guide for Small Business. Also, you may have to pay self-employment tax on your rental income using Schedule SE (Form 1040), Self-Employment Tax. For a discussion of "substantial services," see Real Estate Rents in Pub. 334, chapter 5."