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Can a single member LLC file a 1040 Schedule C for a boat docking rental facility?

Alfredo1967
Level 3

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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Just-Lisa-Now-
Level 15
Level 15

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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7 Comments 7
Just-Lisa-Now-
Level 15
Level 15

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♥¸¸.•*¨*•♫♪
abctax55
Level 15

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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Alfredo1967
Level 3

Thank you for answering my question.

Alfredo1967
Level 3

Yes.

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Alfredo1967
Level 3

Yes, Lisa.

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Terry53029
Level 14
Level 14

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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abctax55
Level 15

@Terry53029

 but.. but... I got more thumbs up !!  Shouldn't I get the solve 

abctax55_0-1708826391296.png

 

"*******Tax software is no substitute for a professional tax preparer*******
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