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A client started docking facility for boats at South Padre Island. He rents the docking facility to the public. He registered his business as a single member LLC. Can he use the 1040 Schedule C to report his income and expenses or is he required to file his income and expenses on 1040 Schedule E?
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SMLLC are disregarded for tax purposes, So it’s no different than a sole proprietorship.
Are you asking if it goes on a rental schedule E?
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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Sch C vs a Sch E is determined by the facts & circumstances.
Rental with no services = E
Rental with services = C.
The fact it is a SMLLC is irrelevant; it doesn't change the nature of the income.
You, and your client, have to evaluate the facts & circumstances.
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Thank you for answering my question.
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Yes.
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Yes, Lisa.
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Hi @Just-Lisa-Now- don't know why few poster's mark the answer that answers their question, as solution, but the poster said you answered their question. The system let me mark it as solution, so I did 😁
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