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Level 1
March 11, 2022
Question

Rental property purchased under a business that files a Schedule C. Does this get put on a Sch E or Sch C

  • March 11, 2022
  • 2 replies
  • 12 views

Client started a business for property investing.  After taking expenses on past tax returns, she now purchased a rental home she found.  The 1099misc for rental income has the businesses name but her social security number on it.  Not sure whether to put this on a Schedule C or an E.

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2 replies

sjrcpa
Level 15
March 11, 2022

Rental income goes on Sch E.

The more I know the more I don’t know.
qbteachmt
Level 15
March 11, 2022

"The 1099misc for rental income"

The Services she provides would be the Sched C, but the property is personal investment. Realize the Sched C is a disregarded entity, so there is not really a "business" for investing. There is only a business if she provides Services for the property, such as running a B&B.

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