My client is thinking of doing long term rentals to students with meals included. So it is a passive activity due to the long term nature (not a hotel). Does the providing of meals mean she is providing sustantial services thus making this a Schedule C activity. This activity will turn a profit.
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Sounds like a boarding house.
Which would be a schedule "C". Unless he offered the rooms without the meal service then he could perhaps split the income between "C" and "E". That's assuming he doesn't offer other personal services such as maid service.In other words, a democratic government is the only one in which those who vote for a tax can escape the obligation to pay it.
Alexis de Tocqueville
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