Are our rentals a business or investment for tax purpose?

[Doris Jin Huang]

2019 is the first year we start to receive rental income. We have 2 rental units located in different parts of new york city. My husband and I both work full-time W-2 jobs. We manage the units ourselves and one of them is quite time-consuming (plenty of repairs, and with eviction involved..). 

1. Are our rentals a business or investment for tax purpose?

2. Curious if everyone actually keeps track of the time spent on landlord tasks?

[John Underwood]

Each rental property goes on a schedule E. It is passive income.

Not sure why you are asking business or investment.

Your CPA should take care of any elections on your taxes.

You don't really need to log hours used on real estate unless you are try to classify yourself as a real estate professional.

Some month I do next to nothing, other months I might need to text my handyman to make a repair or to schedule him to rehab a newly acquired property.