Short term rental switching from schedule E to Schedule C

I have my short term rental (stays less than 7 days), and I have been reporting it on schedule E for many years. I do everything to manage the property, including bookings, organize the cleaning, etc everything.

i understand that there is a STR loophole where I can claim it as a schedule C and any losses can be used against my W2 income.

in TurboTax how do I switch from having it on my schedule E to schedule C this year. What are the ramifications of doing this?

thanks!

23224

Level 12

Sep 2, 2024 6:33:27 AM

i understand that there is a STR loophole where I can claim it as a schedule C and any losses can be used against my W2 income.

Careful not to fall into that "loophole" with tons of losses each year or you'll be audited up down and sideways. Only switch to Sch C if you're providing substantial services to your renters.

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Short term rental switching from schedule E to Schedule C