How can I get TT to view my rental income as a business versus treating it as individual income?

Forum|Forum|7 years ago
June 5, 2019
4 replies
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I use TT Home & Business. My rental business is a true LLC. I like the questionnaire with rental properties to easily identify common rental deductions. When I use this rental questionnaire it treats this as additional income associated with me.

However, I'm not seeing this type of questionnaire listed within the business section. Since it is truly a rental business, I would like to deduct the common rental deductions (depreciation), but also take advantage of business deductions such as SEP IRA.

TurboTax Home & Biz Windows

Best answer by Hal_Al

Answered in the comments

Hal_Al

Level 15

What do you think makes it a business, for Schedule C, rather than a Schedule E rental? The ownership being an LLC does not make it a business. To be a business, you must be providing some sort of services.
See <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/2987453-i-own-a-few-rental-properties-should-i-use-schedule-c-or-schedule-e-what-are-the-advantages-disavantages-of-both">https://ttlc.intuit.com/questions/2987453-i-own-a-few-rental-properties-should-i-use-schedule-c-or-schedule-e-what-are-the-advantages-disavantages-of-both</a>

VolvoGirl

Level 15

And what kind of LLC? You might need to file a separate Business return for it like a 1120 S or C corp or 1065 Partnership/LLC

TaxGuyBill

Level 13

Although it could be a "business", it is NOT entered as a "business" (Schedule C) unless you provide "services" (such as maid service or meals) to your tenants. If you do not provide those "services" to your tenants, it is entered as a rental on Schedule E.

If it is not on Schedule C, you are not eligible to contribute to a SEP IRA based on that income.