This is the best clarification yet and is in sync with the information I am finding else where too. If you are operating like a Hotel providing and charging for room service, daily/weekly cleaning service, Laundry service/linen service, transportation in other words real personal services, then you report your vacation rental of Schedule C.
I have a "long term" vacation rental (30 days or more-extended stay) which is turnkey as in fully furnished including dishes etc, utilities and Wifi/cable amenities. I DO NOT DO ANYTHING BUT MAKE A REPAIR REQUEST DURING THEIR OCCUPANCY (which can be a month or longer) LIKE ANY ORDINARY RENTAL.
I will have to put the new 1099-K I will no doubt recieive to the side because I report on Schedule E not C. I guess well see what type of chaos this creates for IRS and Schedule E tax filers. You do not use the latest Rent payment platforms to pay rental expenses or refund Security deposits to offset the additional income the 1099-K will include based on non reportable Refundable Deposits. It's a one way transaction to only facilitate renters payments to landlords.
