Schedule C or Schedule E ? Pros - Cons

[David C.]

I have read sources/watched videos, etc. regarding reporting rental income on your Schedule C vs. Schedule E.  Each source comments on why one may be better or the other.  Frankly, it seems like depending upon the source, you will get a different answer rather than getting clear cut scenarios explaining the "why's" for each.

My main questions are as follows:

1) In general - What are the pros/cons related to reporting rental income on your schedule C vs. schedule E ?

2) Is it more beneficial to report your rental income on a schedule E, since this prevents S.E. tax, or is it better to report this on a schedule C, since there are no limitations to your deductions ?

3) Spending 750 hours yearly related to your rental business/real estate investing qualifies you as a real estate professional.  Sources I have read state that this then allows you to report your rental income on a Schedule C.  That being said, does this mean that you MUST report your rental income on your schedule C, or can you still elect to report on your schedule E ?

4) The IRS website states, "If you provide substantial services that are primarily for your tenant's convenience, report your income and expenses on Schedule C (Form 1040), Profit or Loss From Business (Sole Proprietorship)."  So if you are actively managing your own properties(substantial services), I would think that you would report your rental income on a schedule C.  Correct or incorrect?

Thanks,

Dave