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Level 2
posted Apr 6, 2022 8:27:49 AM

How do I know if I qualify airb

Own the home.  Provide cleaning service.  Provide coffee and other items.

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7 Replies
Expert Alumni
Apr 6, 2022 8:42:24 AM

If you are asking whether your rental income and expenses should be reported on Schedule C as a business or on Schedule E as a rental, then it depends on whether you provide significant services to your guests.  

 

If you provide daily housekeeping service along with clean linens in addition to the coffee and other amenities, then you may be operating more as a business that would report income and expenses on Schedule C.  Compare what you do with a hotel or bed and breakfast for example.

 

If this is not what you were trying to ask, please respond with some additional details.

Level 2
Apr 15, 2022 6:34:58 AM

yes this is the question I'm asking.  So to report on Schedule C as a business in TT do I just follow self employment section?

Expert Alumni
Apr 15, 2022 6:53:29 AM

Yes, you will select Self-Employment income and then follow the prompts for income, and select all the various expenses you have. The link below will provide some guidance for you.

Level 2
Apr 15, 2022 10:04:05 AM

Making progress...thank you...another clarification question:

Since I am declaring Mortgage Interest, Real Estate Tax for my AirBnB short term rental home (no I don't live there, it is strictly business) I don't put that information under normal "personal" expenses correct?

Expert Alumni
Apr 15, 2022 10:15:19 AM

No.  If your Airbnb is a separately established rental and you never use it for vacations or other personal reasons, then those expenses would be listed on the Schedule C (mortgage interest, real estate tax, insurance, utilities, etc).

Level 2
Apr 15, 2022 10:35:01 AM

Thank you very much!! Yes used only for business in 2021.  How do I account for it if we use for our own vacation time in 2022 or other years.

Level 2
Apr 15, 2022 10:35:53 AM

PS. it would most likely be under 14 days.