Page 25 - IRS - Owning a Business
P. 25
Taxable and Nontaxable Income (4/7)
Business and Investment Income
Rents from personal property. If you rent out
personal property, such as equipment or vehicles,
how you report your income and expenses is
generally determined by:
• Whether or not the rental activity is a
business, and
• Whether or not the rental activity is
conducted for profit.
Generally, if your primary purpose is income or
7 profit and you are involved in the rental activity
with continuity and regularity, your rental activity
is a business.
See Publication 535, Business Expenses, for details
on deducting expenses for both business and not-
for-profit activities.
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