I have an AirBnb rental in separate portion of main home AKA JADU. No personal use. Min. 30 day stays. No separate address. 1st yr. What type of rental is this for Sch E?

[mvalluri]

Does not appear to be Multi-Family because of shared address.
Not a short term rental because of min 30 day stays.
Was thinking of as "Other" and mark as JADU.
Appreciate any thoughts on this.

[Carl]

If the area/room remains classified as a rental the entire time with no personal use, weather it's occupied by a renter or not, it's a standard rental. Make sure you select the option for "I rent out a part of my home" and make absolutely certain you read and head the small print on every screen. It matters.

[AnnetteB6]

A better choice might be to list it as 'single-family dwelling' instead of 'other'.  The end result would be the same and it will not require an attached explanation.

Also, be sure to indicate that you are renting part of your home on the page after you enter the property type.

[mvalluri]

Thank you for your response.

At a future date, if I flip my use and rent the main home, I wanted to be able properly depreciate the main home. Hence the thought of selecting "Other". I am looking to maintain a clear distinction between the JADU and Main home (because different depreciation amounts come into play).

When you say "attached explanation", are your referring to the brief descriptive note next the Other in the Type of Property section?

Also, where does the "renting part of your home" come into Schedule E?
Is that a question for TT to determine if Schedule E actually applies?

[mvalluri]

Thank you for your response.
Agree that it would be Standard Rental.
I have checked "I rent out a part of my home", but don't see how that matters in Schedule E.

[Carl]

have checked "I rent out a part of my home", but don't see how that matters in Schedule E.

Sounds to me like you're jumping the gun before even working through the program the way it's designed and intended to be used. Give it a chance.

It matters big time. There's four things in the property profile section you should be selecting.

- It's a single family home

- 2022 was the first year I rented this property

- I rent out part of my home

- I converted this property from personal use to a rental in 2022

In later screens you will be asked for percentage of floor space that you rent out. That percentage will be the floor space that is "exclusive to the renter".