Tax deductions under Schedule E (i.e Home Office)

[Navid A.]

BP, 

Lots of ambiguous info out there regarding these tax matters (to be expected). If I have 6 rental properties, all under a single-member LLC, is it worth exploring the option of listing income on schedule C and treating it like the intended business it's supposed to be, rather than on Schedule E? I feel like I'd be able to have significantly higher deductions if income were listed under Schedule C for my business rather than on Schedule E, passive income. As I'm transitioning out of the Army, I've spent most of my time pursuing my RE activities that technically qualifies me as a "RE Professional" based on the IRS requirements. Is it worth paying the additional Self-Employment Taxes (keep in mind that my deductions will be higher under schedule C, hence will be showing less taxable income).

I ask this because I have several Business expenses that are not directly tied to any one property or tools/assets that are used for numerous properties (i.e. table saw, Utility Trailer, Simplisafe Unit, etc). This also includes my LLC origination fee, tax prep fees, meal expenses, etc.

To my understanding, the following are NOT deductible under Schedule E income (please correct me if I'm wrong):

• Business Meals
• Home Office Deduction (% of mortgage, utilities, etc)
• Miles driven looking for new properties or meeting agents/clients
• Cell phone expenses
• Travel expenses to/from business trips
• Bank fees

Can someone chime in on this topic? 

[Michael Plaks]

@Navid A.

You cannot wear a Navy uniform if you're in the Army, even for one night, true? Likewise, you cannot use Sch C for anything related to rental properties.

Luckily, the deductions you listed could be deductible on Sch E, subject to some limitations.