gslayton
Level 3
12-07-2019
02:07 AM
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Site rent is the major income for this business. Any other income is incidental and totals less than 1% of total income from campground.
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sjrcpa
Level 15
12-07-2019
02:07 AM
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Are services provided?
Ex-AllStar
Ex-AllStar
gslayton
Level 3
12-07-2019
02:07 AM
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No.
rbynaker
Level 13
12-07-2019
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What's the average rental period?
gslayton
Level 3
12-07-2019
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2/3 annual, 1/3 overnite
rbynaker
Level 13
12-07-2019
02:07 AM
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You might look at all of the discussions surrounding QBI and "rising to the level of a trade or business". Have the facts and circumstances changed over the years? I would do a lot of research before making this switch. There are definitely factors in favor of this being on Sch E. I would think there's still grounds maintenance (maybe that's minimal). With 1/3 overnites I'd also expect an office staffed daily so somebody may be putting in significant hours each year.
Would it be possible to bifurcate the activities? Are the annual rentals in a different section?
Would it be possible to bifurcate the activities? Are the annual rentals in a different section?
gslayton
Level 3
12-07-2019
02:07 AM
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The owner works many hours doing maintenance (mowing, repairing electrical and plumbing systems, picking up fallen limbs, office work (most office work is handled by his family) etc.). I think you've had me looking in the right direction for this issue. Thank you very much.
rbynaker
Level 13
12-07-2019
02:07 AM
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Sure sounds like Schedule C to me. A lot of this is defined by case law which you'll have to research In terms of Regs, what we're really talking about here is SE tax so you're looking at section 1402 and particularly on point Reg 1.1402(a)-4:
https://www.law.cornell.edu/cfr/text/26/1.1402(a)-4
Skip down to "(c) Rentals from living quarters" and see what you think. "Tourist camps" and "parking lots" are specifically mentioned in (c)(2) as subject to SE tax. I think of a campground as a giant parking lot with really big parking spaces. 🙂 And they usually have bathrooms/showers available. Unless they just have a pit toilet a quarter mile down wind, somebody is providing cleaning services for the bathroom!
Rick
https://www.law.cornell.edu/cfr/text/26/1.1402(a)-4
Skip down to "(c) Rentals from living quarters" and see what you think. "Tourist camps" and "parking lots" are specifically mentioned in (c)(2) as subject to SE tax. I think of a campground as a giant parking lot with really big parking spaces. 🙂 And they usually have bathrooms/showers available. Unless they just have a pit toilet a quarter mile down wind, somebody is providing cleaning services for the bathroom!
Rick
gslayton
Level 3
12-07-2019
02:07 AM
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I've been doing Schedule C but just wanted another opinion. Thank you very much. Greg
rbynaker
Level 13
12-07-2019
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Happy to help, a pretty fun research project.