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:

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If the taxpayer materially participates in a real estate activity as a real estate professional, they are considered self-employed and must report their income and expenses on Schedule C (Form 1040), which is used to report profits or losses from a business or profession as a sole proprietor. This schedule must be filed with the taxpayer's individual tax return (Form 1040).

If a Taxpayer Materially Participates in a Real Estate Activity