Schedule C or E
I own a piece of machinery that makes widgets. I have leased the machine to a company, XYZ, that has installed it in their place of business. XYZ pays for everything related to the machine; repairing, maintaining, and servicing the machine. XYZ pays me various amounts each month depending upon how may widgets are made – piece work. At the end of the year XYZ sends me a 1099-MISC showing how much they have paid me for the year. There are no other entries on the 1099-MISC. I do not have a business, I just own the machine. I do depreciation the machine.
If I use Schedule C then I have to pay Self Employment Tax. Can I use Schedule E?