Real Estate Rents

If you are a real estate dealer who receives income from real property or an owner of a hotel, motel,ect..... who provides services (maid services) for guests, report the rental income and expenses on Schedule C or C-EZ. If you are not a real estate dealer or the kind of owner described in the preceding sentence, report the rental income and expenses on Schedule E.



Real Estate Dealer- You are a real estate dealer if you are engaged in the business of selling real estate to customers with the purpose of making a profit from those sales. Rent and receive from real estate held for sale to customers is subject to ES Tax. However, rent you receive from real estate held for speculation or investment is not subject to SE Tax.



Trailer Park Owner-Rental income from a trailer park is subject to SE tax if you are self-employed trailer park owner who provides trailer lots and facilities and substantial services for the convenience of your tenants. You generally are considered to provide substantial services for tenants if they are primarily for the tenants convenience and normally are not provided to maintain the lots in a condition for occupancy. Services are substantial if the compensation for the services make up the material part of the tenants rental payments.



Examples of services that are not not normally provided for the tenants convenience include supervising and maintaining a recreational hall provided by the park, distributing a monthly newsletter to tenants,operating a laundry facility , and helping tenants buy or sell their trailers.



Examples of services that are normally provided to maintain the lots in a condition for tenant occupancy include city sewage, electrical connections, and roadways.