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New Member
posted May 31, 2019 6:58:11 PM

My husband and I are both employed FT but run a side vacation rental business out of our home (which is also our primary residence) Which form should I use? We have W2s

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Level 13
May 31, 2019 6:58:15 PM

Read these two articles over to make sure you're getting all the tax advantages you can.  The first article by TurboTax does a sloppy job on the issue of Schedule C/Schedule E with their brief mention of "Self-Employment" taxes.  The Nolo Press article does a better job.

https://turbotax.intuit.com/tax-tools/tax-tips/Self-Employment-Taxes/10-Tax-Tips-for-Airbnb--HomeAwa...

https://www.nolo.com/legal-encyclopedia/tax-issues-when-renting-your-home-airbnb-vrbo.html

If you simply rent your home for a week, say, and pretty much disappear for the week, that's a rental activity reported on Schedule E.  If, on the other hand, you're providing considerable "service", (e.g, continental breakfast, room clean up and fresh towels when the guests are away, perhaps an evening wine and cheese opportunity), that sounds more like an B&B or hotel and would be reported as a business on Schedule C.

Tom Young




4 Replies
Level 13
May 31, 2019 6:58:11 PM

What do you mean by "side vacation rental business"?  What are you renting? Ordinarily renting a vacation home is reported on Schedule E but other forms of "renting" can and should be reported on Schedule C.  If you are using TTSelf-Employed you certainly can report this activity in either case, but without a better understanding of exactly what comprises your "vacation rental business" it's not clear what Schedule you should use.

New Member
May 31, 2019 6:58:13 PM

Thank you for your reply. Our property is listed With HomeAway/VRBO as a vacation rental property and we rent our home to guests. Hope this helps clarify.

Level 13
May 31, 2019 6:58:15 PM

Read these two articles over to make sure you're getting all the tax advantages you can.  The first article by TurboTax does a sloppy job on the issue of Schedule C/Schedule E with their brief mention of "Self-Employment" taxes.  The Nolo Press article does a better job.

https://turbotax.intuit.com/tax-tools/tax-tips/Self-Employment-Taxes/10-Tax-Tips-for-Airbnb--HomeAwa...

https://www.nolo.com/legal-encyclopedia/tax-issues-when-renting-your-home-airbnb-vrbo.html

If you simply rent your home for a week, say, and pretty much disappear for the week, that's a rental activity reported on Schedule E.  If, on the other hand, you're providing considerable "service", (e.g, continental breakfast, room clean up and fresh towels when the guests are away, perhaps an evening wine and cheese opportunity), that sounds more like an B&B or hotel and would be reported as a business on Schedule C.

Tom Young




New Member
May 31, 2019 6:58:16 PM

Thank you!