You must use Schedule C.Personal Property RentalsReport 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 propertyhttps://www.irs.gov/taxtopics/tc414

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In Schedule E, Deluxe assumes that my rentals are real estate and thus limits how much loss I can deduct. But I rent machines. How can I adjust the business type?

Forum|Forum|7 years ago
June 6, 2019
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Best answer by Coleen3

You must use Schedule C.

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
https://www.irs.gov/taxtopics/tc414

DoninGA

Employee

If you have a business for machine rentals then you should be completing a Schedule C for your business, not a Schedule E for rental properties and royalties.
Delete the Schedule E and then start entering your business income and expenses on Schedule C. In the Wages and Income section scroll down to Business Items and choose Business Income and Expenses (Sch C).

L

larrygrovesAuthor

Thank you for responding to my question so promptly.
I am puzzled, however, because my CPA advised me to use Schedule E rather than C. He says his software provides a choice in Schedule E between real estate versus other types of rented property.
If I cannot resolve this issue in TurboTax, I will be hiring my tax preparation by him.

DoninGA

Employee

As stated by the IRS on the IRS website for a Schedule E - <a rel="nofollow" target="_blank" href="https://www.irs.gov/forms-pubs/about-schedule-e-form-1040">https://www.irs.gov/forms-pubs/about-schedule-e-form-1040</a>
"Use this Schedule E (Form 1040) to report income or loss from rental real estate, royalties, partnerships, S corporations, estates, trusts, and residual interests in REMICs."

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larrygrovesAuthor

Thank you for the reference.

C

Coleen3Answer

Employee

You must use Schedule C.

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
https://www.irs.gov/taxtopics/tc414