The Becks own and operate an assisted-living facility. They provide maid service and meals in a common dining room. Where should they report the income and expenses from this activity?
A)Other Income on Form 1040 and expenses as itemized deductions on Schedule A
B)Income and expenses on Schedule E, Supplemental Income and Loss
C)Income and expenses on Schedule C, Profit or Loss from Business
D)Short-term capital gain on Schedule D

Question

Quizplus · Accepted Answer

Income and expenses on Schedule C, Profit or Loss from Business.

The Becks Own and Operate an Assisted-Living Facility