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Is rental income considered a business when asked for "name and empoyer ID number for this rental"? I notice I owe less tax if I fill in my name and SSN. Am not LLC.

I am not a "sole proprietor" nor LLC.  Just have a few rentals but do not know if I am a "business" for the purpose of this question on Turbo Tax.
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2 Replies
RobertG
Expert Alumni

Is rental income considered a business when asked for "name and empoyer ID number for this rental"? I notice I owe less tax if I fill in my name and SSN. Am not LLC.

Rental income and expenses are reported on Schedule E.  Landlords are not sole proprietors, and rental income is not subject to self employment tax.

 

You enter rental income and expenses in the Income and Expenses section under Rental Properties and Royalties (Sch E).

 

You do not need an employer ID number to enter rental income and expenses.

 

If you are entering a 1099 that was issued to you for rent, it is best to report it in the income section for the rental property it applies to. 

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Carl
Level 15

Is rental income considered a business when asked for "name and empoyer ID number for this rental"? I notice I owe less tax if I fill in my name and SSN. Am not LLC.

On the federal return rental income/expenses is reported on SCH E. You are not asked for name/employer/ID information. However, I suspect that you are being asked for this data on a state return. What state? It matters. I strongly suspect Hawaii, but could be wrong.

 

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