Short-term rentals also have to be depreciated over 39 years instead of 27.5. In TurboTax, this is done by choosing the option for "commercial" as the type of rental, and "non-residential real estate and improvements". Rentals that have an average stay of less than 30 days are considered to be non-residential rentals under the tax code regarding depreciation. (There is a different standard of 7 days or less when determining if it is passive or non-passive income, which is a separate tax matter.)
Yes, it's true that this is not at all clear in TurboTax. TurboTax currently doesn't provide proper guidance for short-term rentals.
David O
