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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29797
Experience:  Taxes, Immigration, Labor Relations
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I have an Scorp that had listed principal activities as ecommerce

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I have an Scorp that had listed principal activities as ecommerce and retail and then added a bed and breakfast to it. Do they need to file any forms to be able to do that?

LEV :

Hi and welcome to Just Answer!
As long as all income and qualified business expenses are reported correctly - there is no need for any special forms if your S-corporation involved into several different business activities.
On the tax return - header - box "B" - Business activity code - use the code for the principal activity - not for additional activities - http://www.irs.gov/pub/irs-pdf/f1120s.pdf
That reporting is for statistical reasons only - and will not affect tax calculations.

Customer:

Previous preparer just kept running it as ordinary income and I think it should go on Form 8825

LEV :

Form 8825 is to report rental income.
As my understanding a "bed and breakfast" is a business activity - and should be reported as an ordinary business income.

Customer:

okay. Thank you so much.

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