You can add it as a Rental or as a Business and you choose based on Active Participation (explained next). There's no specific paper work that you must have, but you should keep all documents related to the cost of the RV, income payments received and receipts for the expenses you paid.
You should also keep a record of all income and expenses in one place (such as a spreadsheet, notebook or accounting software).
If you are doing minimal work related to renting it (like a standard rental property), then you should report it as a rental, which is a passive activity. If you are including extra services with the rental, then you should report it as a business. For example, airport pickup, bed and breakfast, etc.
You'll need the Premier edition of TurboTax for a Rental or the Self-employed edition for a Business.
In either case, you can write-off all costs associated with renting it (things you wouldn't be paying, but for the purpose of having and renting the RV). The software will guide you through your expenses in whichever section you choose.
To add your RV income and expenses:
- Login and click Take me to my return
- On the left menu, under 2017 Taxes, select the Federal
- Select the Income and Expenses tab along the top. To get to the full listing of Income and Expenses you may be asked to, "select options that apply to you," click Continue and then Check for more tax breaks, then See list of all tax breaks
- Scroll down to Business income and expenses to add your RV activity as a business or Rental Properties and Royalties to add your RV activity as a rental
- In either case, the software will be talking about your HOME or BUSINESS and you can replace these terms with RV. Once you've added the preliminary information, you'll come to a summary screen. From there:
- you can add your RV as an ASSET, which will allow you to take depreciation expense each year.
- You can enter your income as General income.
- Then, go through all the expenses and the software will guide you through everything you may have spent.
