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:

Question

Quizplus · Accepted Answer

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