LeonardS
Expert Alumni

Deductions & credits

As @Mike9241 pointed out "If you provided "substantial services" to your renters, then you're considered to have had an "active" role in earning Airbnb income."  in that case you would need to file  Schedule C Profit or Loss from Business.

 

The IRS has a provision for a Qualified Joint Venture (QJV).  "A qualified joint venture is a joint venture that conducts a trade or business where (1) the only members of the joint venture are a married couple who file a joint return, (2) both spouses materially participate in the trade or business, and (3) both spouses elect not to be treated as a partnership.  You may want to consider this as an option rather than filing as a partnership.  Ref: https://Election for Married Couples Unincorporated Businesses.

 

If you need to file a Schedule C due to your active participation and  if you use the QJV option you will simplify your tax filing as you do not need to file a partnership return

@CarolineL

 

 

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