I am seeing for the first time several clients that have rented out their personal residence or vacation home through Air BNB. I am wanting to find out how to deal with the depreciation piece and allocation of expenses as the days rented varies. Any information you can offer would be most appreciated
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It generally comes under the less-than-7-day average stay rules, and it is not considered a passive activity. I have a client who does this and it is a Sche C business. See IRC 1.469.Last edited by Burke; 03-08-2016, 06:00 PM. -
The people I have are exceeding the 7 days. I have one that did it for 84 days and one for 181 days. Any suggestionsComment
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vacation home
You treat it like a vacation home.Comment
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Average stay. Not total days rented. Sounds like Schedule C.Comment
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Pub 527
Just happened to have done a lot of research on this recently
See Pub 527 page 17 under Part 5-Personal Use of Dwelling Unit (Including Vacation Home). There are several examples that may help you.
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It is a Schedule C business if substantial services are provided to the renter, i.e, breakfast (which is implied in AirBNB), cleaning services, providing sundries, toiletries, wine and cheese, concierge services, etc.Comment
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