Wait now. You said you're renting this out via AirB&B. That tells me that this is NOT a long term rental, but instead meets the necessary qualifications to be a SCH C business, just like a hotel or Bed & Breakfast operates. If so, then your income in irrelevant here. You are confusing the income limits that apply to rental property reported on SCH E. For a SCH C business, if you have a million dollars of income from anywhere it doesn't matter. Your startup costs are deductible on the SCH C.
Now if this is a case that you do not meet the requirements to be a SCH C business, then the limits apply.
