Business & farm

Since you are operating your property in a commercial manner and it is basically the same thing as a hotel, the depreciation is for 39 years instead of 27.5, so the way it will be depreciated on Schedule C is correct. 



Exceptions.

Your activity isn’t a rental activity if any of the following apply.

The average period of customer use of the property is 7 days or less. You figure the average period of customer use by dividing the total number of days in all rental periods by the number of rentals during the tax year. If the activity involves renting more than one class of property, multiply the average period of customer use of each class by a fraction. The numerator of the fraction is the gross rental income from that class of property and the denominator is the activity's total gross rental income. The activity's average period of customer use will equal the sum of the amounts for each class. Pub925

As for Schedule E, the instructions state, "Use Schedule E (Form 1040) to report income or loss from rental real estate, royalties, partnerships, S corporations, estates, trusts, and residual interests in REMICs."  Since you fall under the 7 day average rule, and this specifically stated as not considered a rental activity, you cannot use schedule E to report the income.  This means reporting on Schedule C and taking the 39 year depreciation is the correct way to depreciate your AirBnB.