topic Whether you use Schedule C or Schedule E to report your A... in Investors & landlords

What Schedule C or E do you report Airbnb Rental if you rented out your Secondary Home and a family member lived upstairs and you rented out downstairs and we

farmfresh- — Tue, 04 Jun 2019 19:19:23 GMT

Whether you use Schedule C or Schedule E to report your A...

IreneS — Tue, 04 Jun 2019 19:19:25 GMT

Whether you use Schedule C or Schedule E to report your Airbnb rental depends on how actively you are involved in running your Airbnb business and what services you offer. Use:

Schedule C - If you provide services, like a hotel or B&B would (cooking, cleaning services, maid service etc).

Schedule E - If you are just renting out a space and you do not offer any additional services.

The main difference between these schedules is that under Schedule C you are subject to self-employment tax and under Schedule E you are most likely subject to Passive Activity Loss Limitations, which means that your rental deductions cannot exceed your rental income. In other words, the IRS assumes you’re never running at a loss. If you’re not, then you can deduct up to $25,000 regardless of your income.

Most taxpayers chose to report Airbnb rental activity on Schedule E.

To enter the rental on Schedule E in TurboTax Home & Business, please follow these steps:

Click on Business > Continue > I'll choose what I work on.
On the screen, Let's gather your business info, click Start/Update next to Rental Properties and Royalties (Sch E) [See Screenshot #1, below.]
On the Income from Rentals or Royalty Property You Own screen, click Yes.
If you have already entered information about your rental (or transferred it from the previous year), you will come to the Rental and Royalty Summary screen. Click on the Edit box next to the property. [Screenshot #2]
If you haven't yet entered any information about the property, you will see a screen, Is This a Rental Property or Royalty? Mark the button for Rental property and enter information about the property.
Continue through the screens, entering the requested information.

If you are using Schedule C or a different version of TurboTax let me know and I can provide instructions specific to that version.

Re: Whether you use Schedule C or Schedule E to report your A...

simposimon — Tue, 15 Oct 2019 14:50:52 GMT

@IreneS Are you able to confirm if a Schedule E still works if I do not own the property? I rent my home and AirBnb it out throughout the year. I have read that I can still complete a Schedule E (as I do not provide services) and just not claim depreciation since I am not the owner. On TurboTax however, when I select to start a Schedule E the very first question asks if I collect rental income for a house I own... if I state "no" it doesn't take me through to the form at all.... Any help would be greatly appreciated.

Re: Whether you use Schedule C or Schedule E to report your A...

mhansen509 — Tue, 15 Oct 2019 23:20:22 GMT

@simposimon I have the same issue. Let me know what you find and I will do the same!