Sign Rental

Collapse
X
 
  • Time
  • Show
Clear All
new posts
  • geekgirldany
    Senior Member
    • Jul 2005
    • 2359

    #1

    Sign Rental

    Client received income from two companies around $1,500 for allowing them to put a sign on his property. It is property he owns but does not have his main residence there. Just land he owns.

    I want to make sure that this would be reported an rental income Sche E and not Sch C self employment.
  • Maribeth
    Senior Member
    • Oct 2006
    • 425

    #2
    I have had several clients that had the same sort of arrangement with a sign company. Have reported that income on Sch E.

    Comment

    • geekgirldany
      Senior Member
      • Jul 2005
      • 2359

      #3
      Thank you!

      Comment

      • taxea
        Senior Member
        • Nov 2005
        • 4292

        #4
        Since there are no expenses I would think it would go on Ln 21 1040. I don't think this would honestly be considered a Sch E rental. What they are trying to do is skirt SE taxes. What is the justification as Sch E income?
        Believe nothing you have not personally researched and verified.

        Comment

        • Maribeth
          Senior Member
          • Oct 2006
          • 425

          #5
          Vacant land put to some good use by having a sign placed on it. Land held for investment. There is no way I would put it on a Schedule C.

          Comment

          • geekgirldany
            Senior Member
            • Jul 2005
            • 2359

            #6
            Nah, he isn't trying to get away from paying SE taxes. He is relying on me to report it correctly. He only showed me where he did get the income. I could see though how it could possibly be looked at as Sche C income. As such my posting.

            After researching some more I found the following:


            and

            Land Rental for Cell Towers

            It seems that according to the irs.gov link above that it is actually non passive.

            I'll have to read some more but it could actually go as other income.

            Comment

            • Roland Slugg
              Senior Member
              • Aug 2006
              • 1860

              #7
              I'd report it on Schedule E ... land rental, property type 5.
              Roland Slugg
              "I do what I can."

              Comment

              Working...