RV rental - Sch E or C

[11Buster]

My client decided to buy an RV in 2021 and rent it out w/o any personal usage.  He rented it out 88 days, no more than 7 days as a time, provided no substantial services other than delivering and setting up onsite/picking up & breaking down, if within a 200 mile radius of his home, and cleanings in between rentals.  I am leaning towards a schedule E.  On the other hand it is a rental of personal property and as such, should be on sch C?  If the former, I think I can only take bonus (not section) 179 depreciation on entire cost of RV?  There is a lot of different views out there!

[IRonMaN]

I think you might want to lean the other direction.  Since the renters appear to be driving it around as part of the renting deal, you are renting a vehicle and not real estate.  That makes me lean the opposite direction over to schedule C.

[qbteachmt]

"no substantial services other than delivering and setting up onsite/picking up & breaking down, if within a 200 mile radius of his home, and cleanings in between rentals."

Uh, other than that, what would be left? Tour guide and chauffeur?

You want this Pub:

https://www.irs.gov/pub/irs-pdf/p925.pdf

[11Buster]

I do not believe this is a question of being a passive activity or not....this would be more of whether considered a business or not.  As IRonMan points out, this becomes more of a business of renting out personal property, whether its the RV itself and/or the truck used to set up/breakdown, when delivery is requested vs. pickup at client's premises. Thank-you for both responses.  But I think I am correct. esp if reported on a sch C, I can take either 179 or bonus.

[11Buster]

Have had another response from a person on my tax education provider webpost here in SoCal who insists it should be reported on both lines 8 and 24a of 1040 - schedule 1.

[qbteachmt]

"who insists it should be reported on both lines 8 and 24a of 1040 - schedule 1."

Agree to disagree. See this, which is like Turo:

https://www.thebalance.com/car-rental-income-3193073

[TaxGuyBill]

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@11Buster wrote:

My client decided to buy an RV in 2021 and rent it out w/o any personal usage.  He rented it out 88 days, no more than 7 days as a time,

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To me, the regularity of the rental likely makes it a business, which would put it on Schedule C.