TLDR:Where do I enter my rental business income and expenses on Turbo Tax?Is it the rental section for Schedule E or the business' section for Schedule C?If I enter it on Schedule C, do I add my properties as assets so they can be depreciated? Additional information:I'm not a licensed real estate agent but I think I qualify as a real estate professional by IRS standards. Not including my home, I have:2 residential properties and 1 vacant lot I'm holding until the price goes up - I'm in the middle of rezoning them.4 commercial properties rented out.2 residential properties rented out.I personally manage it: collect, invoice, get contractors, pay property taxes (no NNN leases), and repair as myself what I can.I paid off my mortgages years ago. Interest was charged.It's not my only business but it is the only one I don't have an LLC for yet.When I tried entering using the rental section, I got hit with a loss limitation so that made me look into passive vs. active renting. Thank you for any and all help.

A

amac_red77

Solved

Where do I enter my rental business income and expenses on Turbo Tax?

Forum|Forum|2 years ago
November 8, 2023
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TLDR:

Where do I enter my rental business income and expenses on Turbo Tax?

Is it the rental section for Schedule E or the business' section for Schedule C?

If I enter it on Schedule C, do I add my properties as assets so they can be depreciated?

Additional information:

I'm not a licensed real estate agent but I think I qualify as a real estate professional by IRS standards.

Not including my home, I have:

2 residential properties and 1 vacant lot I'm holding until the price goes up - I'm in the middle of rezoning them.
4 commercial properties rented out.
2 residential properties rented out.
I personally manage it: collect, invoice, get contractors, pay property taxes (no NNN leases), and repair as myself what I can.
I paid off my mortgages years ago. Interest was charged.
It's not my only business but it is the only one I don't have an LLC for yet.

When I tried entering using the rental section, I got hit with a loss limitation so that made me look into passive vs. active renting.

Thank you for any and all help.

TurboTax Home & Biz Windows

Best answer by Anonymous_

Yes, you would use Schedule C but note what the term "significant services" includes and excludes.

See https://www.irs.gov/instructions/i8824#en_US_2022_publink12597kd0e204

Significant services do not include the furnishing of heat and light, cleaning of public areas, trash collection, or similar services.

Significant services would include the furnishing of meals, maid service, and the like.

A

Anonymous_

Employee

Use the Rental Properties and Royalties section of the program (Schedule E) unless you are a real estate dealer or perform significant services for your renters.