Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

Airbnb Income

taxu2
Level 4

Taxpayer had rental home on Sch E in 2022. After tenants moved out at end of 2022, they made it an Airbnb in 2023 and will continue to do so. Can this be left on Schdule E or would it need to be on Schedule C. I've seen both with research and just checking to see if it comes down to average nights stayed per guest and substanial services? 

4 Comments 4
TaxGuyBill
Level 15

@taxu2 wrote:

just checking to see if it comes down to average nights stayed per guest and substanial services? 


 

No and yes.

Average nights does not impact Schedule E versus Schedule C, but "services" does.

 

Average nights could possibly impact passive versus nonpassive (do they "Materially Participate"?).

IRonMaN
Level 15

The amount of services provided is key more than anything else.  But the fewer average nights usually would mean more services provided.


Slava Ukraini!
Camp1040
Level 11

If TP is not providing substanial services then I would leave it on Sch.E.

If the propery ls always available for rental use you should not have any adjustment for taxes, interest ect.

Just-Lisa-Now-
Level 15
Level 15

google Short term rental substantial services  if they are providing those services, then Sch C is what you use.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪