pkellycpa
Level 5
11-11-2021
09:03 AM
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Is operating a self storage business subject to self employment tax?
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dkh
Level 15
11-11-2021
09:08 AM
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Level 15
11-11-2021
10:53 AM
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If real property you would put it on 1040 schedule E. not subject to se tax
TaxGuyBill
Level 15
11-11-2021
10:59 AM
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If it provides "services", yes, self employment tax applies and it goes on Schedule C.
If "services" are not provided, it goes on Schedule E.
From what I remember from court cases, I think I came to the conclusion that most self-storage facilities do NOT provide "services".
Level 15
11-11-2021
11:21 AM
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If you read the instructions for schedule E, line one says as an example "self storage unit" so I can see why the court cases would side with schedule E, therefore no SE tax