Hello,
I purchased a home in April 2023. It took me two months to furnish the move and move in. This home then became my primary residence. I put up one of the rooms on Airbnb and used a second room for storage of which most of the items stored there were for the Airbnb like extra sheets, guest supplies, cleaning supplies etc while I stayed in the third room.
The room is only ever used for Airbnb but occasionally I block some days when I will not be able to clean due to not being in town or something needs to be changed/fixed.
The average stay of each guest is well under 7 days ~3 nights per guest. I have put in well over 100 hours solely into the Airbnb even though I only started in July.
My understanding is that:
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Yes your understanding is correct.
Government Recording and Transfer Charges
You can include these closing costs and add them to the cost basis of the property as noted above.
Thank you.
As for what schedule to use, my understanding is that since:
1.) That is true, but see #2 -
2.) To be all non-passive, it would need to be reported on Schedule C. There is a special allowance of 25K (for Schedule E) of passive income to offset non-passive income.
See this discussion that explains the exceptions to filing Schedule E.
Tax Tips for renting out a room in your home
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