West Virginia Condo Rental Taxes and Business Registration Advice

[jjhackn]

My wife and I purchased a ski in/out condo in Snowshoe, WV. We will use the property a lot ourselves, but plan to rent it via Airbnb during peak season. From what I can find online it appears I need a business registration due to West Virginia State Tax TSD-435. The property and mortgage is in our personal names. My question is what business structure is best for this scenario and how do we need to handle taxes? I understand Airbnb will collect taxes on our behalf and we know how to submit the additional local taxes/fees already. When filing, is this something that gets filed on a schedule e? I am just trying to ensure we do everything properly and in the most financially sensible way. We appreciate any advice!

[Anonymous_ · Accepted solution]

See https://www.irs.gov/taxtopics/tc415

See also https://www.irs.gov/instructions/i1040se#en_US_2021_publink24332td0e96

If you and your wife file a joint return, you would report the income and (pro-rata) expenses on Schedule E unless you provide substantial services that are primarily for your tenant's convenience, such as regular cleaning, changing linen, or maid service. In the event you provide substantial services, you would report income and expenses on Schedule C.

See https://www.irs.gov/publications/p527#en_US_2020_publink1000234065

You might want to consult with a local tax professional for your first year of ownership and rental in order to get everything set up properly.

See https://taxexperts.naea.org/listing/service/individual-tax-preparation