Depreciating home in 8829 business use vs SchC Line 13 for AirBnb

[parvitstax]

Hi,

I have a 2000 sq foot home. My home office is 100 sq ft. I AirBnB my 2 rooms in the home each 100 sq ft. 

Can you explain 8829 vs SchC Line 13 difference? 

8829 says business use of home so figured that's office + 2 rented rooms. 

It's obviously more beneficial to count on Lin 13 so wondering what factors to consider here to determine the appropriate placement. 

[Just-Lisa-Now-]

Dont enter it on Line 13.  

You add the asset near the bottom of the 8829 so the % of sq ft of your dedicated business space vs the sq ft of the entire house will apply to the expenses in the proper %..  

[parvitstax]

If I use my land as a campsite for AirBnb.. how would that space be deducted? Can it be depreciated?

[Just-Lisa-Now-]

Land doesn't get depreciated.

[TaxGuyBill]

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@parvitstax wrote:

SchC

It's obviously more beneficial to count on Lin 13

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Just double checking ... you are providing "services" to the tenants (such as maid service, meals, concierge services or transportation) that is putting it on Schedule C?

Why is it obviously better to have it on Line 13 of Schedule C?  If the activity is profitable, it should have the same result as 8829.

[parvitstax]

2nd year in business and 1st year earning income so business is not profitable yet. But I understand how in profitable years Line 13 and 8829 can have the same affect. 

1. The air bnb rooms are inside my home, why can't they be depreciated on line 13? Let's assume for a net negative year, would I be allowed to enter this on Line 13 if @TaxGuyBill says 8829 does the same thing as Line 13 but Line 13 is not limited to profits?

2. I am curious how running a campsite on my property could be depreciated, it at all? I have depreciated improvements to that area of my land already. 

[Just-Lisa-Now-]

Ohhh, I skipped the part about this being an AirBnB, I dont think 8829 gets used in this situation, does it?

I don't have any STR that use Sch C.

[TaxGuyBill]

So "services" ARE provided to the tenants, which puts it on Schedule C?

Because it is your residence, the §280A rules apply, including you can't deduct expense in excess of income.  It seems weird to put it on 8829, but the way 8829 treats it is correct (by not allowing the expenses in excess of income).

[parvitstax]

So under no circumstances should a home be depreciated as an asset for Line 13? Only depreciated as an asset for 8829?

I'm attempting to stretch this question to also address business use of my land... is it possible to deduct/depreciate that area at all? It is a campsite I had to put work into creating and exclusively used for that business.