I have a married couple as clients who said they earned about $10K in 2017 by renting out their NYC apartment to Airbnb while they were out away on vacation. How do you report this? does Airbnb issue 1099-MISC with $ amounts in the "Rents" box? What deductions could they take against this income?
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1099 issue or not it is reported on Sch E following the Sch E instructions.Believe nothing you have not personally researched and verified. -
Correct. I have a client that rents out her beach cottage during the summer months. 90% of the rents is paid through PayPal. I believe PayPal has a nice report that will itemize all that for you. The issue that you have to deal with is personal use on Sch E. You can't go negative.Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDRComment
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Schedule C can come into play if short-term rentals or substantial services.Comment
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Only substantial services. The term of the rentals (average length of stay) only matters for passive loss rules, not self employment. Maybe it would go on Schedule C, but not subject to SE tax and treated as a passive activity. I'd rather just put it on Schedule E, because it is designed for rentals."You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe Howard
"That's enough! When you didn't know what you were talking about, you really had something! [to Curly]" -Moe HowardComment
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