I Airbnb homes that I lease from other people, I am not the property owner. In filling out the schedule E, I find it very confusing. My choices are below, please let me know if i'm doing it right.
1. At the bottom of "It this a rental property or royalty", it asks "this property is owned by" and displays my name, my wife's name, and "both of us". Just to move on, I chose my own name just to move on.
2. "what type of rental is this" I chose Vacation rental (i rented out the house 249 out of 365 days in 2017)
3. skipping to the next important part, under "property ownership", I chose, "No, I owned less than 100% of xxx house"
4. "we can automatically divid your income and expenses for you", I chose "yes" and put 0% for ownership percentage.
5. "do you materially participate in this rental property", I chose yes
6. "rents from a trade or business" I chose yes since i run 4 rentals and it is my full time job.
7. "lets find out if you're an active participant in this property" I chose "no"
Did I do this right?
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You are correct that airbnb rentals can be put it on schedule E, but since you are working to rent the units full time, I would actually recommend putting it on schedule C as a self-employed business. You'll find the questions more applicable. Enter all property rents , under rent for business expenses. Report all earnings as business income.
If you prefer to use schedule E (passive rental), then you almost have all of the questions correct. You won't add the property as an asset for depreciation under the rental expenses section, which is the primary difference between how it would be entered if you own the home/apartment.
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