Hello,
I’ve been receiving conflicting advice on whether to file my Airbnb income and expenses on Schedule E or C.
My wife and I have a cabin used exclusively for Airbnb. It was rented for 184 days in 2022, with an average stay of 2.14 days. We both actively participated in the operation of the rental. I have read that these two criteria alone would allow us to use Schedule C.
However, I have also read that the above PLUS providing “substantial services” for guests are required to use Schedule C. Speaking of which, “substantial services” are not all that clear. We offer cleaning services, fresh linens, toiletries, food, coffee, wine, other drinks for each rental (both in between rentals and while guests are there upon request). Guests have full use of grills, games, a fire pit, etc. We provide guides and regularly field calls and questions for recommendations regarding local amenities. We even decorate/set up the cabin for special occasions upon request (birthdays, and even marriage proposals believe it or not). Does any of this qualify as a “substantial service”?
With all of this in mind, would you suggest Schedule E or C?
Thank you for your help!
