Thank you both. What im understanding so far is that as long as i dont provide substantial services (hotel like services) i dont have to pay SE tax, regardless of the 7 days or less rule that i see around, or how many hours i use during the yr to get ready the airbnb, which is what have me confused. That the 7 days rules and how many hrs one do (material participation) is for how to treat the losses of the activity, not to determine if that income is subject to SE tax. Please correct me if im wrong.
I worry because i received a IRS Notice CP59 ("You need to file your 2023 tax return"). The reason why i didnt filed it is because i live in Puerto Rico and we dont have to file 1040 unless we have to pay SE tax, in which case we use 1040 PR. I understand one should file a form 15103 stating why i didnt file it, and in my case is because "I am a bona fide resident of Puerto Rico and my only income in 2023 is from rental income without substantial services in Puerto Rico (Sections 937 and 933 of the Code)". This is what im planning to write on the form. Not sure if i should add a letter explaining further or that would be enough; for example adding references to Pub 527 and 334 as reference for the Airbnb treatment (substantial services).
I will appreciate further help. I didn't put the "im in PR" part at first because i wanted to clear if/when Airbnb pays SE tax without adding complexity to the question.
Thanks
