chair rent for hair salon

[gman]

Schedule C or Schedule E. Owner and daughter. Daughter pays chair rent to mother.

[Edsel]

To each her own

Daughter has a Schedule C. Mother has a schedule E, unless she also is participating in the operation of the salon. If mother is a participant, then she reports the revenue from chair rental in her total revenue.

[oceanlovin'ea]

She might consider forming an LLC and being taxed as an s corporation if she works in the shop and has several chairs she rents.

Otherwise, she is paying self employment income on the chair rentals. If she was taxed as an s corp, she could pay herself a salary based on her work.

Linda

[taxea]

this is common place in this type of business. Other income on mom's Sch C because it is not a separate building or room. Expense on daughter's Sch C.