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Can a single member LLC file a 1040 Schedule C for a boat docking rental facility?

Forum|Forum|2 years ago
February 24, 2024
2 replies
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A client started docking facility for boats at South Padre Island. He rents the docking facility to the public. He registered his business as a single member LLC. Can he use the 1040 Schedule C to report his income and expenses or is he required to file his income and expenses on 1040 Schedule E?

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Best answer by Just-Lisa-Now-

SMLLC are disregarded for tax purposes, So it’s no different than a sole proprietorship.

Are you asking if it goes on a rental schedule E?

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Intuit Community Champion

SMLLC are disregarded for tax purposes, So it’s no different than a sole proprietorship.

Are you asking if it goes on a rental schedule E?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

Alfredo1967Author

Level 4

Yes.

Alfredo1967Author

Level 4

Yes, Lisa.

Level 15

Sch C vs a Sch E is determined by the facts & circumstances.

Rental with no services = E

Rental with services = C.

The fact it is a SMLLC is irrelevant; it doesn't change the nature of the income.

You, and your client, have to evaluate the facts & circumstances.

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Alfredo1967Author

Level 4

Thank you for answering my question.