Non Realtor Rental management on Sch C

[AZ-Tax]

TP spouse manages the rentals. First tax year for their rentals. Spouse figures she spent at least 800 hours managing the properties. Spouse is not a realtor. Taxpayer AGI is over $150K (the phase out). I was looking into filing a Schedule C with spouse being Property Manager. Spouse kept pretty good books. Your thoughts?

Adding: spouse does NOT have job other then the rental management duties

[Gary2]

Are there records to substantiate the 800 hours?

[AZ-Tax]

According to the taxpayer, Yes.

According to the taxpayer, Yes they can support at least 800 hours of rent related duties.

[taxea]

Then it is a Sch C but I don't think it the time factor matters. If she is in the business of managing rental properties the Sch C. If it her own property and there are no additional services involved then it is a Sch E

[Bay ArEA]

Then it is a Sch C but I don't think it the time factor matters. If she is in the business of managing rental properties the Sch C. If it her own property and there are no additional services involved then it is a Sch E

I agree, sounds like she qualifies for real estate professional and can take it on E if there are no other services and she can take the full losses if that suits them. Just be darn sure they have a physical, detailed log to back up their hours; it is so important.

[joanmcq]

Also, you might want to do a little bit of reseach as to what constitutes activities that contribute to material participation, and what activities don't.

And it might help to have pictures of her onsite with a toolbelt on, setting a toilet. These audits are not pretty. And the taxpayers usually lose.