Does income from an Air B&B go on a Schedule C or a Schedule E?

[Patrice · Accepted solution]

There are a couple of ways the Air B&B income can be reported, depending on how long the average rental duration was, and how much personal use occurred.

-If you have more than 14 days of rental use, and more than 10% of total days used or 14 days (whichever is greater) is personal use, then it's a "vacation home" that's reported on Schedule E.

-If the personal use of the space was less than 10% of the total days used or 14 days (whichever is greater), and the average length of rental was 7 days or less (or less than 30 days and personal services were provided like providing linens, cleaning, etc.), then you've got a "business" that's reported on Schedule C.

-If the personal use of the space was less than 10% of the total days used or 14 days (whichever is greater), and the average length of rental was more than 7 days (or more than 30 days if no personal services were provided), then you've got a plan vanilla rental activity that's reported on Schedule E.

https://ttlc.intuit.com/replies/3288530