Subleasing your business office for income.
I have a consulting business (professional corp). I pay $600 to lease my office (cheap i know). It turns out that it is common practice to sublease other days to offset my lease. I sublease at $250/day. So i can get positive cash flow on leasing if I sublease at three days.
I have active income where I see clients. I have a rent expense. I have income from subleasing (passive income). Is the subleasing passive income separate from my active consulting business? i.e. It's a different business in itself, and I would file it as a schedule E? as a sole proprietor? Should I deposit the passive income into a different account or is that considered commingling? Seems like a hassle to organize it separately but I see the tax advantages. Kinda want to just clump it together. It can offset some business expenses, and it doesn't look like I need to work as hard.
What are your thoughts?