Thanks you both very much for your detailed explanation and consideration of all aspects of this situation. I'm sure there are others in the same boat that will...

Carl, could we go with Bill's plan on separate entry? Create a new rental asset entry for the guest house, add the new building under that ($250K building value...

Hi, Yes, I've done Sch E in the years past and it seems we can continue that way. I've been thinking, I probably need to add the new building as an improvement ...

Hi, I've found a couple of sources advising Airbnb income is Sch E activity provided no other services are offered (which is the case here - we rent space only,...

Hi, thank you for a very detailed instructions, I greatly appreciate the effort. The situation is a bit more complex, here is how : The main house is a 1,366 sq...