Rental income received by a taxpayer shall be included in the computation of net profits from business under Section 183.0501 only to the extent that the rental, ownership, management or operations of the real estate from which such rentals are derived, whether so rented, managed or operated by a taxpayer individually or through agents or other representatives, constitutes a rental activity of the taxpayer in whole or in part. Rental losses derived outside the City cannot be netted against rental gains located within the City. Other business entities operating separately from the rental entity cannot net a loss or gain against a loss or gain generated from the rental activity.
(a) Rentals received by a taxpayer engaged in the business of buying and selling real estate shall be considered as part of business income. Profits and losses within the City may be netted against profits and losses of other business entities if also located within the City.
(b) Profit or losses from rental property located within the City, held for individual investment purposes, can be netted only against profit and losses of other rental also located within the City.
(Ord. 1996-246. Passed 11-26-96.)
(c) Property owners that do not consider the property the property owner’s domicile, whether or not available for rent or lease, must report the status of the property, and if occupied, the resident’s name on a yearly Eastlake tax return.
(Ord. 2005-131. Passed 12-6-05.)