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Donna Genie explains why campgrounds don't belong on Schedule E. They're active businesses that need Schedule C instead, unless you own a passive mobile home park with no on-site manager. Get it wrong and you risk tax problems.
Donna Genie explains why campgrounds don't belong on Schedule E. They're active businesses that need Schedule C instead, unless you own a passive mobile home park with no on-site manager. Get it wrong and you risk tax problems.
If you've looked at your tax return recently and your campground is being taxed on a Schedule E for supplemental income, like a rental property, you may want to reassess how you're preparing your taxes. The IRS has clarified this in many cases and in their rules that you cannot treat an operating campground like a rental property. A rental property is typically a passive investment where you kind of sit back and wait for the money to roll in. We all know a campground is not like that. It's an operating business and cannot be taxed on a Schedule E. The very minimum rules to be on a Schedule E are going to be a mobile home park where you really don't have a manager on site and you do very little except collect that monthly rent. Most campgrounds are not anywhere near that. So if you find that your tax return has shown your campground treated as a Schedule E instead of a Schedule C like Charlie, then you've got some risks that need to be mitigated. We're here to help you straighten that situation out. Working with a specialist can save you a lot of money by not making the right strong moves.
