Can a single member LLC file a 1040 Schedule C for a boat docking rental facility?

[Alfredo1967]

A client started docking facility for boats at South Padre Island. He rents the docking facility to the public. He registered his business as a single member LLC. Can he use the 1040 Schedule C to report his income and expenses or is he required to file his income and expenses on 1040 Schedule E?

[Just-Lisa-Now- · Accepted solution]

SMLLC are disregarded for tax purposes, So it’s no different than a sole proprietorship.

Are you asking if it goes on a rental schedule E?

[abctax55]

Sch C vs a Sch E  is determined by the facts & circumstances.

Rental with no services = E

Rental with services = C.

The fact it is a SMLLC is irrelevant; it doesn't change the nature of the income.

You, and your client, have to evaluate the facts & circumstances.

[Alfredo1967]

Thank you for answering my question.

[Alfredo1967]

Yes.

[Alfredo1967]

Yes, Lisa.

[Terry53029]

Hi @Just-Lisa-Now- don't know why few poster's mark the answer that answers their question, as solution, but the poster said you answered their question. The system let me mark it as solution, so I did 😁

[abctax55]

@Terry53029

 but.. but... I got more thumbs up !!  Shouldn't I get the solve