Question

Can I change rental income from Schedule E to Schedule C?

Forum|Forum|6 years ago
June 4, 2019
1 reply
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Last year I had a Lake property which I rented through AirBNB and reported income & expenses on Schedule E. This year I purchased a 2nd property and have extensive interaction with the short term guests and would like to report on Schedule C since I was unable to deduct loss last year due to high income limitation. Can I start reporting now on Schedule C and if so how do I carryover last year's loss?

TurboTax Self Employed Online

L

Leonard11_2

If you provide substantial services that are primarily for your tenant's convenience, such as regular cleaning, changing linen, or maid service, you report your rental income and expenses on Schedule C (Form 1040), Profit or Loss From Business,

If you provided substantial services to your tenants in 2017 you can amend your 2017 tax return to report the services on Schedule C. Each unit is treated separately so for 2018 you report your substantial services on Schedule C when you file your 2018 tax return.

The link below is to Publication 527 and has information,(page 12) that you may find useful.

[Edited 04/07/2019|11:24 am PDT]

https://www.irs.gov/pub/irs-pdf/p527.pdf

P

Portiasteve

Do you know how to move depreciation schedules from schedule E to Schedule C to amend a return to report rental activity as a business? Thanks

V

Vanessa A

Thank you for your extensive explanation.

Just one follow up question for clarity; the new cost basis would be Cost minus total depreciations taken on sch e? Or is the new cost basis the previous Depr Basis which is different from Cost?

Thank you.

Cost basis is generally your cost minus depreciation. It depends on where you are entering it, on if you would enter it as two separate items or just one. Where are you entering it?

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