Schedule C or E or Both?

TheCSH
TheCSH Member Posts: 1 Newcomer
edited January 15 in General

I have 2 properties that I ran as Short Term Rentals from Jan 1 through March 30. On April 1, I changed them to Long Term Rentals and they will be long term rentals for the future.

Do I need to File Schedule C for the 1st 3 Months and Schedule E for the last 9 Months or can I just file a Schedule E this year?

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Answers

  • MatthewD
    MatthewD FreeTaxUSA Team Posts: 340

    Hi,

    Even though those were short-term rentals, you can still file everything on a Schedule E. Generally speaking, rental income reported on a Schedule C: Business Income, is used by tax filers whose primary source of income comes from rentals, like an apartment or hotel owner, or someone who has so many rentals that is all they do for business.

    You do have one advantage though. If you are actively involved in the daily activities of the rental, like collecting rent, repairs, signing rental agreements and so on, you can claim larger rental losses, instead of postponing passive-activity losses.

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