While I almost never disagree with Phil on taxes, a vacation rental, IF treated as a business rather than mostly personal use with a couple of weeks rental, files a schedule C.I have never heard of mere short-term rental of residential property being automatically treated as a business requiring Schedule C. Pros?Nor I. Not having read the book cited, I can only think of three explanations: (1) the author is mistaken, (2) the OP has misinterpreted what the author wrote, or (3) the author is basing his position on tax court decisionss that haven't made their way into IRS pubs. (I haven't done any research to locate such decisions.)IRS Pubs 527, Residential Rental Property (ch. 3), and 334, Tax Guide for Small Businesses (ch. 5) state that in order for a rental to be considered a business activity (Sch. C), you must provide substantial services that are for your tenant's convenience (such as regular cleaning, linen service, maid service) and not just for maintenance of the property (such as utilities, trash collection). There's another catch to Sch. C reporting: any income is subject to SE tax. Ira
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra