Donna Bordeaux explains why campground owners typically can't use Schedule E for taxes. The IRS treats campgrounds as active businesses requiring Schedule C, not passive rental income. A few mobile home parks with minimal management might qualify for Schedule E, but most misfiled returns face serious audit risk.
September 14, 2023
Donna Bordeaux@campgroundaccounting.com
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 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. And it's a pretty stable crew of people that you have there renting from you. 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 wrong moves and taking excessive risks. If you have that situation, I'd be happy to talk with you about how we can help you remedy that. I'm Donna Bordeaux@campgroundaccounting.com Please reach out to us and we'll be happy to help.
