I own a few rental properties, should i use schedule C or schedule E? what are the advantages/disavantages of both?

Residential Rental Real Estate is reported on SCH E 99.999999999999% of the time. If you only own 1-3 rental properties and report it on SCH C, you can fully expect to be audited on it 24-36 months after you file. While its not impossible for residential rental property to qualify as a SCH C business, it is uncommon enough to practically guarantee an audit, unless your tax return shows that rental income is your *PRIMARY SOURCE* of income and you have enough rentals that generate enough income for you to support yourself (and family if married) for the tax year.

Being that this is obviously your first time dealing with rental property, or first time dealing with it in the TurboTax program, the below information provides clarity that (in my personal opinion) the program does not.

When dealing with rentals, absolute perfection in that first year of tax reporting is not an option. It's a must. Even the tiniest of mistakes will grow exponentially over time. THen when you catch the error years down the road, the cost of fixing it will be expensive. So if you have questions or need further clarity, please ask. The only stupid question is the one you didn't ask. It's not like you learn this stuff through osmosis.

Rental Property Dates & Numbers That Matter.

Date of Conversion - If this was your primary residence before, then this date is the day AFTER you moved out.
In Service Date - This is the date a renter "could" have moved in. Usually, this date is the day you put the FOR RENT sign in the front yard.
Number of days Rented - the day count for this starts from the first day a renter "could" have moved in. That should be your "in service" date if you were asked for that. Vacant periods between renters count also PROVIDED you did not live in the house for one single day during said period of vacancy.
Days of Personal Use - This number will be a big fat ZERO. Read the screen. It's asking for the number of days you lived in the property AFTER you converted it to a rental. I seriously doubt (though it is possible) that you lived in the house (or space, if renting a part of your home) as your primary residence or 2nd home, after you converted it to a rental.
Business Use Percentage. 100%. I'll put that in words so there's no doubt I didn't make a typo here. One Hundred Percent. After you converted this property or space to rental use, it was one hundred percent business use. What you used it for prior to the date of conversion doesn't count.

RENTAL PROPERTY ASSETS, MAINTENANCE/CLEANING/REPAIRS DEFINED

Property Improvement.

Property improvements are expenses you incur that add value to the property. Expenses for this are entered in the Assets/Depreciation section and depreciated over time. Property improvements can be done at any time after your initial purchase of the property. It does not matter if it was your residence or a rental at the time of the improvement. It still adds value to the property.

To be classified as a property improvement, two criteria must be met:

1) The improvement must become "a material part of" the property. For example, remodeling the bathroom, new cabinets or appliances in the kitchen. New carpet. Replacing that old Central Air unit.

2) The improvement must add "real" value to the property. In other words, when  the property is appraised by a qualified, certified, licensed property appraiser, he will appraise it at a higher value, than he would have without the improvements.

Cleaning & Maintenance

Those expenses incurred to maintain the rental property and it's assets in the useable condition the property and/or asset was designed and intended for. Routine cleaning and maintenance expenses are only deductible if they are incurred while the property is classified as a rental. Cleaning and maintenance expenses incurred in the process of preparing the property for rent are not deductible.

Repair

Those expenses incurred to return the property or it's assets to the same useable condition they were in, prior to the event that caused the property or asset to be unusable. Repair expenses incurred are only deductible if incurred while the property is classified as a rental. Repair costs incurred in the process of preparing the property for rent are not deductible.

Additional clarifications: Painting a room does not qualify as a property improvement. While the paint does become “a material part of” the property, from the perspective of a property appraiser, it doesn’t add “real value” to the property.

However, when you do something like convert the garage into a 3^rd bedroom for example, making a  2 bedroom house into a 3 bedroom house adds “real value”. Of course, when you convert the garage to a bedroom, you’re going to paint it. But you will include the cost of painting as a part of the property improvement – not an expense separate from it.

I own 1 rental property and it is used to provide 100% of my income. The business is registered as a legal business in my city and state and I file quarterly income taxes with the state and of course, federal taxes in April.

I do not provide daily "hotel service".

This year do I use a  Schedule E, as I have been for the past 6 years, or can I change to Schedule C so lenders will be able to process my PPP loan application?

I've applied for several PPP loans from different lenders, but they all ask for my Schedule C, which I cannot provide. I send them my Schedule E, but they just reply back to me to submit a Schedule C instead.

I know that Short Term Rental businesses are allowed to receive a PPP loan, but how can I get it if I don't have a Schedule C ?

Thanks

Do the same Schedule E vs. Schedule C rules apply if you don't own the rental property? Properties are on lease to own arrangement, but are rented out and generating income. Can I report on Schedule E and just dont report depreciation expense? Or is it more appropriate on a Schedule C?

Check the irs.gov for the definition of a "Real Estate Professional".  If you meet the criteria then your rental real estate activities are a business not "rental activity".  There may be some advantages to you using a Schedule C (you can set up a Individual 401k, deduct all office expense etc., deduct depreciation as active vs. passive loss) but the criteria is very specific and expect an audit so you put ducks in a row ahead of time.    

I have a vacation condo.   I stayed there 84 days.  I rented it 133 days.   This made the income to not be considered passive income due to my length of stays there.  I have a loss. I do not materially participate in running the condo.   A property management company does that.  I thought that I should use Schedule E for Vacation Home Rentals.  However, TurboTax agents stated that I should put it on a Schedule C as a business.  Is this correct?  This would mean that losses can be claimed in the current year against other nonpassive income and future profit may be subject to self-employment tax.  Is Schedule C the correct way to report this?