How do I report airbnb income on my apartment rental

[robertcarruth1]

I rented an apartment in NYC and airbnb'd it at end of year as I moved in with my partner.  how do I report this income as I was using it to pay my rent.

[PatriciaV · Accepted solution]

Note: If you rented this property for 14 days or less, you are not required to report the rental income. But you also cannot deduct any related expenses.

Rental activity for Airbnb may be reported in two different areas of your tax return, for specific reasons, and with different outcomes. Please review this article for a discussion of these options so you may choose the most appropriate place to report this on your return: http://www.nolo.com/legal-encyclopedia/tax-issues-when-renting-your-home-airbnb-vrbo.html

Most taxpayers chose to report Airbnb rental activity on Schedule E. If this applies to you, start under Wages & Income >> Rental Properties (or search for "Schedule E") and follow these instructions:  Where do I enter income and expenses from a rental property?

If you provide services to your guests and choose to report your income from Airbnb as self-employment on Schedule C, you may be able to use Schedule C-EZ in the Deluxe and Premier versions of TurboTax Online.

Start under Wages & Income, 1099-Misc and Other Common Income, Income from 1099-Misc (or search for "1099-MISC"). Even though Airbnb probably gave you only an Earnings Summary, enter the income reported to you as if from 1099-Misc and indicate that you may also have income for 2016 from the same source. (Note that if you have any expenses, you will be prompted to upgrade). Based on your entries, TurboTax will prepare Schedule C-EZ for your return.

[revised 2/3/17 for clarity]

[ngamero]

Schedule E assumes that I own this property that I am renting a room out of. I'm just a renter myself. How do I get around this?

[PatriciaV]

@ngamero You may report your AirBnB income and related expenses on Schedule E even though you do not own the property. You will not be able to claim any depreciation for the property, however, because you do not own it. Answer "no" to the "do you own...?" question. This will not affect Schedule E, other than the program will not let you enter the property for depreciation.

[bb1413-]

@TurboTaxPatriciaV I answered No under the "Do you own less than 100% of this property". Then it gets in to days I owned the property and percentages etc. This is very confusing as I am a renter. Please advise

[PatriciaV]

Substitute "renting" for "owning" in any questions of this sort. The only question that matters is the one asking if you own the property (which is "no"). Otherwise, answer as if you are the owner.

[lukehawksworth]

@TurboTaxPatriciaV  I rent my apartment and airbnb the extra bedroom.  I'm curious where I list my rent as an expense?

[PatriciaV]

You can list any expenses that don't fit the main categories under Miscellaneous Other Expenses using a custom description.

[redaly17]

I rented one bedroom of my 3 bedroom home that I own for 122 days in 2018 through Air Bnb. Do I file this income under Schedule E or through a miscellaneous self-employment income (I did not receive a 1099 form from Air Bnb). Should I purchase the Premier Turbo tax product or the Self-employment product to add deductions from the rental expenses?

[ht61]

@TurboTaxPatriciaV  Hi, I also don't own my property which I have airbnb rental income from in 2018. When I add the property under schedule E the TurboTax system asks me whether I own the property myself or with my wife. However, it does not give me the option to state that I do not own the property or that I just rent it. What should I do in this situation? Pls help thanks

[redaly17]

@TurboTaxPatriciaV I rented one bedroom of my 3 bedroom home that I own for 122 days in 2018 through Air Bnb. Do I file this income under Schedule E or through a miscellaneous self-employment income (I did not receive a 1099 form from Air Bnb). Should I purchase the Premier Turbo tax product or the Self-employment product to add deductions from the rental expenses?

[Leeser1]

You could use C if you considered yourself in the business of renting but there is also a Schedule E that allows you to report the income, take expenses as deductions, and avoid having to pay self-employment tax. That could be more appropriate for you.  See Nolo Press: http://www.nolo.com/legal-encyclopedia/tax-issues-when-renting-your-home-airbnb-vrbo.html

[DeltaGirl]

I airbnb'd 95% of a home that I was living in and renting myself in 2018 the entire year.  My Airbnb income paid for all of the rent for that year.  Do I need to claim the income on my return? If I must claim it as income, which Turbo Tax software do I use?  I also work full time for an employer.

[simposimon]

Can you expand on this please?
When I attempt to start a Schedule E the very first question is:

"Did you have any rental or royalty income and expenses in 2018 for property you own?"

When I select "NO" (as I am renting the property myself) it doesn't allow me to do any more on the Schedule E. How do I complete it as a renter like you say without claiming depreciation since I don't own?

[craiggangi]

What is the best way to "wipe out" the rental income for rentals under 14 days? Isn't it important for the tax return to "acknowledge" the 1099 you get? I dont see a simple way in TurboTax to do this.

Also, does anyone know is the 14 day rule applies to NJ state income taxes?

Thanks!