I own a house with my family (my portion is 25%) that we lease annually at $2000/month. This year I leased it for the year and am paying the $2000 to the joint family account and I am short-term renting it on Airbnb. So assuming I make income above the $2000 a month I am paying - how do I account for this? Historically I took 25% of the depreciation/mortgage interest deductions on Schedule E. Do I still take these? Do I subtract the $2000 rent I am paying from the short term rental income - even though 25% of the rent I'm paying is actually mine? Or should I do one Schedule E where I do the $500/month income (for my 25% portion of the $2000/month) along with the depreciation/mortgage interest deduction and a separate Schedule E for the same property where I account for it as an Airbnb where I am paying $1500/month in rent (removing the $500/month that is mine) and include all of the other Airbnb expenses I incur.?
I think in this situation you need to confer with a tax pro. rental to family members can create some complex tax reporting issues and we do not know enough about the operations.
one of the issues is that generally an Airbnb would be regarded as a business. a multimember business generally is supposed to file a partnership return which for 2024 was due 3/15/2025. penalties for late filing are about $900 per month
We each report our share of income and expenses on our individual tax returns (Form 1040) using Schedule E. I'm the only one that uses Turbotax. The rest of my family file with accountants and do the same and have been doing so for years. I'm not sure why the tax year of 2024 would be relevant to my question as this activity of me leasing it and renting it out as an Airbnb is beginning in tax year 2025.