Question

Raj is self-employed. He operates a business that rents water sports equipment by the hour. During the current year, he had rental income of $275,000. Where is Raj's rental income reported on his tax return?
Schedule C (Form 1040).
Schedule E (Form 1040).
Schedule 1 (Form 1040).
Schedule 2 (Form 1040).

Answer 1

Schedule C (Form 1040).

Because Raj is self‑employed and operates an equipment rental business (renting personal property by the hour), the receipts are business income reported on Schedule C and are subject to income and self‑employment tax.