Can I claim depreciation on primary residence that is used for Airbnb part of the year?

[Jack1122]

I rented my primary residence out As Airbnb while I was out last year, about two months in total. Can I claim partial depreciation on the residence?

[AmyC]

Yes, you will file sch E for the rental and claim depreciation for that time period. That means when you go to sell the house, the depreciation you claimed will adjust the basis so keep good records.

[Jack1122]

Thanks for the advice. Is there any disadvantage if I do not do the depreciation?

[AmyC]

The depreciation deduction, will save you some tax dollars.  Life twists and turns so take it while allowed. Personally, I recommend you add your sch E and worksheets to your financial notebook. Since this Sch E will need to stay with your records until 3 years after you sell the house. Your tax records should go in there each year anyway. We only hold them 7 years,

If you don't have one, I urge you to create a financial notebook that is kept separate from your tax return. Keep it safe and each year, add your year-end statements from all your financial accounts plus a copy of your W2’s, your  carryover information, and proof of your basis in your various investments. You must keep tax records  from the time you purchase until sold/ loss used plus 3 years. It is very easy to lose track of disallowed losses, carryforwards,  and basis. This can be a digital or paper notebook.

[Jack1122]

Thanks again for the advice. Since this is Airbnb short-term rentals, is it supposed to be sch E, not sch C?

[AnnetteB6]

Yes, it should be on Schedule E, most likely.  

Schedule C is used when significant personal services are provided to your guests in addition to a place to stay, such as daily housekeeping or providing meals.  

Take a look at the following TurboTax help article to learn more:

Should I report my rental on Schedule E or Schedule C?
 

@Jack1122