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Can I file a schedule C one year and a Schedule E the next year for the same short term rental property?

Can I file a Schedule C one year and file a Schedule E the next year for the same short term rental property? I have an AirBNB and filed a Schedule C the first year since I was actively involved by cleaning the house sometimes between guests. The second year I did not clean and we do not provide substantial services to guests and I feel like a Schedule E should be filed instead of C. Can I file a schedule E instead the second year or do I have to stick with Schedule C? Or if I feel a Schedule E should be filed since we do not provide substantial services to guests do I have to amend my first return and change it from a Schedule C to E?

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Can I file a schedule C one year and a Schedule E the next year for the same short term rental property?

You don't have to amend your prior year return and change your business reporting. You can be actively involved in the business and provide additional services to you short term tenants, like cleaning, cooking etc. in one year and just receive rental income in another year. It is acceptable as long as you consistent with your depreciation deduction for that property. 

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2 Replies

Can I file a schedule C one year and a Schedule E the next year for the same short term rental property?

You don't have to amend your prior year return and change your business reporting. You can be actively involved in the business and provide additional services to you short term tenants, like cleaning, cooking etc. in one year and just receive rental income in another year. It is acceptable as long as you consistent with your depreciation deduction for that property. 

Carl
Level 15

Can I file a schedule C one year and a Schedule E the next year for the same short term rental property?

You don't need to do that. Besides, reporting long term residential rental real estate on SCH C is just flat out wrong. (with "extremely" rare exceptions, of which being "actively involved" is not one of those exceptions.)

Long term rental income/expenses is reported on SCH E. You've provided no information that would lead me to think or believe otherwise.

 

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