schirallicpa Posted March 27, 2023 Report Share Posted March 27, 2023 Do I still need to put each rental on a Sch E if they are in fact a business and used as primary source of income. They own several rentals and definitely meet criteria to be considered NOT passive. Quote Link to comment Share on other sites More sharing options...
Lee B Posted March 27, 2023 Report Share Posted March 27, 2023 Unless they provide enough services to be reported on Schedule C then I enter each rental. Copied from Instructions for Schedule E: "Complete lines 1a, 1b, and 2 for each rental real estate property. For royalty property, enter code “6” on line 1b and leave lines 1a and 2 blank for that property. If you have more than three rental real estate or royalty properties, complete and attach as many Schedules E as you need to list them. But answer lines A and B and fill in lines 23a through 26 on only one Schedule E. The figures on lines 23a through 26 on that Schedule E should be the combined totals for all properties reported on your Schedule E." 4 Quote Link to comment Share on other sites More sharing options...
Max W Posted March 27, 2023 Report Share Posted March 27, 2023 If they are Real Estate professionals, the income is usually considered as non-passive. Quote Link to comment Share on other sites More sharing options...
michaelmars Posted March 30, 2023 Report Share Posted March 30, 2023 Easy answer, yes! Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted March 30, 2023 Report Share Posted March 30, 2023 Well, you can elect to treat them all as one rental activity (aggregate), but if I recall correctly, there are some negatives if you sell one property at a loss. Also, I think you still have to report each rental separately, but the aggregation has benefits of meeting the active rental rules. https://www.journalofaccountancy.com/issues/2014/aug/rental-taxes-20149906.html https://www.journalofaccountancy.com/issues/2000/jul/aggregatingyourrentalactivitybesuretotelltheirs.html Quote Link to comment Share on other sites More sharing options...
Lee B Posted March 30, 2023 Report Share Posted March 30, 2023 Good Article: https://kahnlitwin.com/blogs/tax-blog/the-pros-cons-of-making-the-grouping-election-for-your-rental-real-estate-a Quote Link to comment Share on other sites More sharing options...
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