@Carl wrote:
Sch C Real estate assets are depreciated over 39 years. SCH E real estate assets are depreciated over 27.5 years. I have high expectation that if you do that, you'll be hanging out a sign that screams for an audit. But that's just me. Bottom line is, you're gonna do what you're gonna do. Makes no difference to me.
There's a lot of incorrect information in this thread. The depreciation period for a rental property has nothing to do with what schedule it's on. Residential properties are depreciated over 27.5 years, and non-residential are depreciated over 39 years. Also, rentals with an average stay under 30 days are considered to be non-residential as well, so short term rentals are also depreciated over 39 years. Those rules are the same whether the rental is on schedule C or E.
I would recommend first question if you're sure this rental should go on Schedule C at all. Specifically, it goes on Schedule C only if you provide "substantial services", which means services during guests' stays, such as daily cleanings during their stay like a hotel (not just between guests), entertainment, or meals. But that's very rare. Normal Airbnb rentals that are cleaned between stays go on Schedule E.
