AirBnB

[BulldogTom]

Is an AirBnB host a rental activity or a sch C business?

[Richcpaman]

It would fit the Motel model much better than any long term rental Sch E action.

Rich

[Lee B]

I have a nephew who has 3 AirBnB rentals with an average rental of 3 to 4 days.

Did his own return reporting on Schedule E

Got hammered by the IRS was forced report on Schedule C.

[Terry D EA]

I guess I could see the IRS's position with the Sch C. Not sure how it differs from renting a room in your home, other than falling into the personal use category. Interesting!

[jasdlm]

Does the issue revolve around whether they just rent a room, or whether you provide breakfast, maid service, etc?  (E vs. C)

[Lee B]

Think about it. If you're renting to someone for several days or even a week or two, you are providing cleaning services, clean towels and linens, clean dishes, glasses and kitchen utensils, heat, water, garbage, cable TV and Internet.

If you are renting month by month, the renter pays for almost all of these things.

[FDNY]

This guide was prepared by E&Y at the request of AirBnB that I keep on my desktop.  Scroll down to section 9.    AirBnB.pdf

[BulldogTom]

So what do you do about depreciation?  I am thinking it has to be almost like listed property.  Square footage of rental area as a % of the home times rented days % to get a % of the basis?  Or just change the business use percentage in the FA Module every year?  I am sure it doesn't go on the 8829...or maybe it does?

 

[BulldogTom]

2 minutes ago, FDNY said:

This guide was prepared by E&Y at the request of AirBnB.  Scroll down to section 9.    AirBnB.pdf

That helps.  Thanks