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Should I report my rental on Schedule E or Schedule C?

by Intuit Updated 3 months ago

Generally, landlords filing 1040 or 1040-SR returns will report their rental income and expenses on IRS Schedule E: Supplemental Income and Loss.

However, if you provide "substantial services" to your tenants or your real estate business generates rental income, use Schedule C: Profit or Loss from Business.

Properties rented through a corporation or partnership (including LLCs taxed as such), report rent-related income and expenses on the business's return.

How can I tell if I'm providing "substantial services" to my renters?

Substantial services go above and beyond the basic services typically provided to renters (utilities, maintenance, landscaping, trash collection, etc.). If you’re providing hotel-like perks such as regular cleaning or maid service (in excess of 10% of the rental cost), fresh linens or towels, in-room coffee, transportation, or sight-seeing, you’re providing substantial services, and that means you'd file Schedule C.

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