BobKamman
Level 15
Monday
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From the magazine the owners read:
One of the most common tax mistakes self-storage owners make is to report activity from their company on Schedule C (Profit and Loss From Business) rather than Schedule E (Supplemental Income and Loss). Again, this comes down to understanding the differences between active and passive income. Here are a few things you should know:
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Again, income from a self-storage facility (rental income) is considered passive.
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Active income is reported on Schedule C, while passive income is reported on Schedule E.
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If you report you income on Schedule C, you’re paying unnecessary taxes!
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Active income is subject to self-employment tax, while passive income isn’t.
