Schedule C or E?

I had a tax question and wonder if you can help me.  I called IRS several times to get answers and was even more confused after spoke with Reps there since they gave me different answers each time.   

I have a side business (acquiring rental properties and getting them rented) besides a 9-5 regular office job.  My rental business has been operated under my (sole proprietorship) company.  This company was established back in 2005/2006 under general business category, but since last year it's been dedicated to rental business.  I wonder whether I should report the rental income/expenses under Schedule C (if you are in this RE business) or Schedule E (for supplemental income/expenses), which gave me very different results in tax.

The IRS reps told me that since I have a sole proprietorship bsuiness dedicated to the real estate business, I should report income in Schedule C.  However, I was confused while reading publication 334, page 21, Real Estate Rents section.  That language seems to indicate I should file in Schedule E instead of C, since I am not a dealer who makes commission/profit by selling/renting properties, I am just renting out my own several properties.

I am not prone to either option, but just wanted to get clarification and file tax correctly. 

 Thanks a lot!!

 

所有跟帖： 

• 下午不是有很多人回答過你的問題了？最簡易的辦法 -萬楓- ♂ (69 bytes) () 02/21/2012 postreply 19:28:54

• 回複：下午不是有很多人回答過你的問題了？最簡易的辦法 -jaegqgb_2012- ♀ (78 bytes) () 02/22/2012 postreply 06:59:35

• My findings -studley- ♂ (249 bytes) () 02/23/2012 postreply 13:42:09