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How to I enter for Personal Property Rental on lines 21 and 36 on 1040 in TT? IRS TC414 indicates I would not need Schedules C or E, whereas TT seems to dictate that I do

Forum|Forum|7 years ago
June 5, 2019
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We rented out our basement for 7 months. It consumes 27% of our total usable space. The amount charged was about 1/3 of our mortgage. Seems that IRS TC414 states that when you are not in the business of renting, but have rented temporarily a space that is yours, you can fill in the 'income' on line 21, and the 'expense' on line 36, but no further direction is given.

Furthermore, schedules c and e seem to be in that document for those who are actually running it as a business, or the property is a defacto rental, not a personal use space temporarily rented out.

Here is the relevant text I'm looking at:

Personal Property Rentals

Report income and expenses related to personal property rentals on Form 1040, Schedule C.pdf or Form 1040, Schedule C-EZ.pdf, Net Profit From Business (Sole Proprietorship), if you're in the business of renting personal property.

Report income on line 21 and expenses on line 36 of Form 1040.pdf, U.S. Individual Income Tax Return, if you're not in the business of renting personal property. <<-- This is where we qualify

TurboTax Deluxe Online

Best answer by Arash

Your income and expenses for renting out your basement most likely go on schedule E.

If you provide "substantial services" to your guests such as regular cleaning, changing linens, or maid service, you can report this on schedule C. Think hotel owners.

Typical basement rentals go on schedule E.

An example of a "personal property rental" that would be reported on line 21 and 36, is if you rented a vehicle or equipment that you own. Real estate is not considered "personal property."

A

ArashAnswer

Your income and expenses for renting out your basement most likely go on schedule E.

If you provide "substantial services" to your guests such as regular cleaning, changing linens, or maid service, you can report this on schedule C. Think hotel owners.

Typical basement rentals go on schedule E.

An example of a "personal property rental" that would be reported on line 21 and 36, is if you rented a vehicle or equipment that you own. Real estate is not considered "personal property."