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posted Jun 5, 2019 2:38:15 PM

I own a long term rental house with a short term rental airbnb on the same property. I don't live in either. Do I list these as separate rentals? Unsure how file.

The airbnb is a separate structure with its own utilities. I didn't earn enough to receive a 1099-K but rented for 125 days (almost $10,000) so the income has to be reported. The other rental is a single family home for long term renters and I collect rent each month but do not pay utilities. I am unsure how the mortgage interest, property taxes, etc are to be divided.


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1 Best answer
Employee Tax Expert
Jun 5, 2019 2:38:16 PM

Yes, report these as separate rental units.

For shared expenses, you can divide in any reasonable manner if you wish. Or enter the interest/property taxes under the single family home for simplicity. Enter any unit only expenses under the unit they apply to (Airbnb or the single family home).

It doesn't really matter if you divide the shared expenses because they will just get added back into one expense total on line 23e of the schedule E. It's really more of a bookkeeping issue than a tax issue.

2 Replies
Employee Tax Expert
Jun 5, 2019 2:38:16 PM

Yes, report these as separate rental units.

For shared expenses, you can divide in any reasonable manner if you wish. Or enter the interest/property taxes under the single family home for simplicity. Enter any unit only expenses under the unit they apply to (Airbnb or the single family home).

It doesn't really matter if you divide the shared expenses because they will just get added back into one expense total on line 23e of the schedule E. It's really more of a bookkeeping issue than a tax issue.

Employee Tax Expert
Jun 5, 2019 2:38:17 PM

added attachment.