Are startup costs without revenue deductable for setting up an airbnb in 2018 but we sid not start renting it until March of 2019.

[Trouthunter]

Cash purchase of home and some but not all start up costs transpired in 2018.   Remainder of start up costs and rental income in 2019.

[Ashby · Accepted solution]

You would not start depreciating the home until the rental was "put-in-service" which would be 2019.

As far as start up costs, it really depends if you plan to report the Airbnb rental on Schedule C (in the business of renting) or Schedule E (passive rental income). 

If you choose to use Schedule C, you can deduct startup costs in 2018, but not the house itself. 

As long as your start-up expenses are less than $5000, you can add them as Business Expenses. Continue past the expense categories (or choose Other Miscellaneous Expenses) to the page titled "Enter Business Expenses Not Yet Reported" and enter the description & amount

If you choose Schedule E, you will need to record expenses all in 2019.