What is difference between Rental or Business Income?

  • Sometime it is difficult to determine whether rental income from property or from business.  The most important factors in determining income source are the number and kinds of services you provide for your tenants.  It is property income if you are earning income from property by renting space and providing basic services only which includes heat, light, parking and laundry services. If you provide additional services to tenants such as cleaning, security, and meal then you may be carrying on business. Bottom line is, more services you provide, the greater the chance that the rental operation is a business

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