Client wanting to show rental income & expenses on Sch. CProSeries
Client files a joint return. She works, makes a $100,000 + per year, husband on social security and manages their 6 rental units (in 3 houses). With the depreciation deduction they're showing big losses each year ($30,000 to $40,000) but they can't take them as they get phased out due to their income. She's asking, "can't we file the rental income and expenses on Sch. C since it's all my husband does. He works at it well over 750 hours/yr., does all the upkeep, changes the linens, etc."
What do you think?