The Becks Own and Operate an Assisted-Living Facility

Multiple Choice

The Becks own and operate an assisted-living facility. They provide maid service and meals in a common dining room. Where should they report the income and expenses from this activity?

A) Other Income on Form 1040 and expenses as itemized deductions on Schedule A
B) Income and expenses on Schedule E, Supplemental Income and Loss
C) Income and expenses on Schedule C, Profit or Loss from Business
D) Short-term capital gain on Schedule D