Carl, actually, AirBnB's own tax guide indicates that AirBnB's may be either Sched C or Sched E businesses, depending on the specifics. Also H&R Block has an AirBnB guide with a flowchart to help users decide whether their AirBnB is Sched C or E - and at least in my case it is 100% clear that it's Sched C.
As to whether the simplified method can be used - it's commonly called the home office deduction, but IRS language indicates any "qualified business use" of the home can use it - the question then is what exactly is a qualified use; I was under the impression that a B&B would qualify, but I guess I'll find out when I get my taxes back from my accountant shortly!
