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Taxes

Schedule C vs Schedule E — when does each apply?

E for passive rentals; C for active businesses (flipping, wholesaling, dealer activity).

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Direct answer

E for passive rentals; C for active businesses (flipping, wholesaling, dealer activity).

Expanded explanation

Misfiling on C triggers SE tax; misfiling on E loses certain deductions. Material short-term rentals often blur the line.

Examples

  • 5 LTRs on Schedule E; flip business on Schedule C.

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