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Article Date:
February 2010

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Rental Property Business Tax Attributes

Does your rental property activity meet the definition of a trade or business activity?


If “yes,” your rentals produce the best possible tax benefits.


In general, you report your rental properties on Schedule E of your tax return. When your activity rises to that of a business, you continue to report the rentals on Schedule E, but with the business classification you qualify for



tax favored Section 1231 treatment;


business use of an office in your home;


business (versus investment) treatment of meetings seminars, and conventions; and


Section 179 treatment on your business-use assets.

Rental as a Business


In Levy,1 the court ruled that the trustees of this estate, by renting the real estate, were engaged in a trade or business. This court then went on to say:2


Courts have consistently held that the rental of real estate is a "trade or business" if the ... Log in to view full article.

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