AirBnB tax filing

[JohnB42]

Need some guidance on filing AirBnB income for vacation home.

Facts:

- wife and i own home with another married couple.  This is second home, vacation home, investment for us.

- The four of us formed an LLC partnership (equal 25% share) to handle managing property and all related expenses, opened a separate business bank account pays all utilities/maintenance/repairs etc. with idea to eventually do short term rentals.

- 2024 was first year we put home on AirBnB; have owned home 3 years

- The home is owned personally by all of us, the LLC is not on deed

- The LLC received 1099-K from AirBnB for ~$9k

(1) Were were suppose to file form 1065 last month?  (2) Do we need to?

(3) When filing, can the LLC deduct property taxes, mortgage interest, and property insurance?  I question this as LLC does not own the property.  (3b) If not, can these be deducted on personal income 1040?

(4) I assume LLC can deduct all other rental type expenses, cleaning, maintenance, repairs, utilities, against income to business, correct?

[PatriciaV]

Yes, a partnership is required to file Form 1065 every year. The due date was March 15 but you should still file a return. You'll need to use TurboTax Business (online or desktop). TurboTax offers an assisted version, which may be helpful for filing quickly.

Only the owner(s) of the property may claim mortgage interest and property taxes. All other expenses paid by the LLC should be reported on the partnership return.

If the partnership was formed to run the rental business, the property should be deeded over to the LLC. The value of the property at the time of the transfer will be considered a capital contribution to the partnership (which increases the partners' basis in the investment).

You may wish to consult with a local tax attorney for advice specific to your investment situation.