When does a rental property become a schedule C

[Judy rocks]

My client is an artist and has had a schedule C for many years. The last few years it's been a loss. A few years ago he began renting large warehouses and fixing them up for spaces for artists to rent. This has really worked for him. When does a rental business become a schedule C. The difference here is he is renting and renting to others. His artist business is not making a profit. His rental business is. When do I have to change the Schedule E to a Schedule C? Is it ever required? I don't know where to look this up. Suggestions on where to find more information on this helps.

[Bob McCoy]

Here are a couple of sources

http://www.irs.gov/publications/p527/ch03.html#en_US_2014_publink1000219116

http://www.ehow.com/facts_7364101_schedule-vs_-schedule-rental-income.html

[Bob McCoy]

One more.

http://www.irs.gov/publications/p334/ch05.html#en_US_2014_publink1000313358

[taxea]

they are all Sch E from the beginning unless he is providing services to the rental areas.

[Lion]

Or, short term rentals. Does an artist rent for 7 days or less, to finish a messy project, for instance? If monthly or longer leases and no substantial services and renting a defined space or sharing rent on the whole studio, then it's Sch E.

If just renting easel space, like a hair salon renting a chair, then it might be Schedule C. Facts & circumstances!