Taxpayer has been renting a house for years and now plans to turn it into an Air B&B. Will it still be reported on Sch E
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Yes, unless they provide significant services, such as meals, tour guidance, etc. Every tax aspect of AirB&Bs has been covered in the tax code for decades."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 Howard -
Depends if he will offer services. See the tax book for info on Air B&B's. It will go on schedule E or C. Use Schedule C only if the rental activity is considered an active business, such as when you provide substantial services like meals or daily cleaningComment
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Thank you. I did read the Tax Book and just was unsure about what all was considered services. It mentioned cleaning but of course they do clean when renter leavesComment
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Cleaning a unit after the tenants move out is not a service that would turn this into self employment income. Unless the AirB&B consists of room(s) in the same residence where the host is present, it is highly unlikely that it would be reported anywhere but on Schedule E."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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