Air BNB Property with Personal Use

[lsundocpa]

Taxpayers own an AirBNB property in West Virginia. They occupy the home personally for 30 days out of a calendar year. Do they need to have a tenant in the house for at least 300 days to meet the 10% test and therefore to be able to take losses on the property? Or are days that the AirBNB is listed and available for rent, but not rented, counted as rental days for purposes of the 10% calculation?

Thank you!

Lauren

[Anonymous_ · Accepted solution]

Section 280A provides:

The dwelling unit is used as a residence if the number of days it is used for personal purposes exceeds (the greater of) 14 days or 10 percent of the number of days during such year for which such unit is rented at a fair rental.

Rental expenses in that case can only be deducted up to the level of rental income (i.e., no losses).