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i asked this before, but if i had income for renting a business

 
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  • Answered by:LEV
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Customer Question

i asked this before, but if i had income for renting a business out (subleasing it), can i add this to schedule c line 1 instead of putting it on schedule e? thanks

Submitted: 356 days and 19 hours ago.
Category: Tax
Value: $16
Status: CLOSED

Accepted Answer

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Expert:  LEV replied 356 days and 19 hours ago.


LEV :

Hi and welcome to Just Answer!
Rental income generally is not reported on schedule C - it is reported on schedule E.
Why do you want to report rental income on schedule C?

Customer :

i guess because it was subleased out and it wasn't a property i owned.

LEV :

What exactly did you subleased?

Customer :

rental space that we were renting and then we subleased it. however, we had all of our displays and computers in there. it was a previous business we had. the person subleasing only had to bring in their inventory.

Customer :

i paid for all of the bills and the subleaser just paid me a check for everything. their payment covered all of the expenses i was paying for them and then there was a few hundred dollars extra left over (profit). however, they didn't pay for any of the fixtures in there.

LEV :

Based on your information - that is not self-employment income - but rental income. I would suggest to report on schedule E.

Customer :

can i also use the extra left over each month as payment for fixture purchase from the subleaser and how would i put this in the Income Tax?

Customer :

they ended up keeping the fixtures at the end anyways.

LEV :

Do you mean the fixtures were sold or taken as part of payments?

Customer :

as part of payments that they paid for each month to purchase.

LEV :

So you need to report two issues (1) sale of the fixtures (2) rental income

Customer :

i see. ok. great. thanks!

Expert TypeTax Advisor
Category: Tax
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Answered: 5/6/2012

Experience: Taxes, Immigration, Labor Relations

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