The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Vacation Rental Management

URL:  http://boards.fool.com/puddinhead-while-you-do-need-real-estate-to-run-a-30510137.aspx

Subject:  Re: Schedule C vs E. Date:  1/28/2013  6:50 AM
Author:  inparadise Number:  82 of 91

Puddinhead,

While you do need real estate to run a vacation rental, the IRS seems to be increasingly auditing these businesses and insisting that they be declared on schedule C not E, requiring payment of SS and other taxes as well. Much of the difference in requirements seems to hinge on how long the property is rented. If the average rental, number of days rented/number of distinct visits, is less than 7 days, and you offer things like linens or other goods/services, then they lean towards schedule C. I've gotten this from those who have been audited, rather than something I can link.

As for a tax book, I like this one: http://boards.fool.com/great-tax-book-29179737.aspx Don't remember their touching the need for schedule C, but great on telling you how to document expenses. If you don't do it the right way, they will be disallowed.

IP
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us