If a taxpayer materially participates in a real estate activity as a real estate professional,the income and expenses of the activity should be reported on:

A) Schedule A
B) Schedule C
C) Schedule E
D) None of these

Question

Kaitlynn Wilkinson · Accepted Answer

Final Answer : B, Explanation :  Schedule C is used for reporting income and expenses from a business you operated or a profession you practiced as a sole proprietor. In the case of a taxpayer materially participating in a real estate activity as a real estate professional, the activity is considered a business, and thus Schedule C is the appropriate form for reporting its income and expenses.

If a taxpayer materially participates in a real estate activity as a real estate professional,the income and expenses of the activity should be reported on:

A) Schedule A
B) Schedule C
C) Schedule E
D) None of these

Definitions

Learning Objectives

Learning Objectives

Related questions

If a taxpayer materially participates in a real estate activity as a real estate professional,the income and expenses of the activity should be reported on:A) Schedule AB) Schedule CC) Schedule ED) None of these

Definitions

Learning Objectives

Learning Objectives

Related questions

If a taxpayer materially participates in a real estate activity as a real estate professional,the income and expenses of the activity should be reported on:

A) Schedule A
B) Schedule C
C) Schedule E
D) None of these