Property management income for sole prop on Schedule C

Forum|Forum|1 year ago
January 27, 2025
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Can I claim management income on Schedule C if I actively manage my rental property? In my case, I do realize this will lead to self-employment tax, but I would like to show earned income for various reasons.

Not A Product Question

MinhT1

Real estate rental is unearned income and must be report on Schedule E.

You can only report your rental as a business on Schedule C in either of the following cases:

1. You provide hotel-like services with your rental such as maid service, cleaning service, transportation, etc... See this TurboTax Help article.

2. You are a real estate professional. To meet this condition, you have to meet the following 4 tests:

You materially participated in a real property trade or business.
More than half of your time is involved in real estate activities during the year.
You materially participated for more than 750 hours in this business.
You materially participated in each rental real estate activity.

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