Posted by Dave T on April 03, 1999 at 16:09:54:
It sounds as if you have Schedule D and Schedule E activities. Your rental income and expenses go on Schedule E. Your purchase and sale are reported on Schedule D.
taxes and lease/option- schedule C or E? - Posted by Bill
Posted by Bill on April 03, 1999 at 09:04:53:
Should this go on schedule C or E?
Lets say you lease a property for 6 months in '98. You in turn sublease.
In '99, you exercise the option to buy, and turn around and sell the property the same day.
As a business, you would be taxed for self employment tax (an extra 15% or so whacked off the top) … but as a real estate investment, no self employment tax applies.
Re: taxes and lease/option- schedule C or E? - Posted by Bud Branstetter
Posted by Bud Branstetter on April 04, 1999 at 24:43:10:
You can show the master lease on a schedule E expense item. Just no depreciation. You can expense all the other typical expenses like mileage, repairs etc. The problem is how do you expense that L/O course or computer on a schedule E? Unless you do it in the corp you also hit the 2% floor. And what about that mail campaign that cost $500 to find this one l/o.