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How to deduct a tiny house RV used as a vacation rental
We purchased a tiny house this year that was built on a trailer and plan to list it as a vacation rental on AirBNB, VRBO, etc. We won't be using it personally at all; it's strictly going to be a rental. It was purchased with cash in the name of our business that's a sole proprietorship. We do have an LLC, but we did not purchase the tiny house through the LLC.
Do we need to depreciate it over 5 years as an RV? It technically does qualify as an RV, though we don't plan to move it. My understanding is that we cannot take a 179 exemption and claim the entire amount in one year, is that correct?
I guess we should call it an RV rather than a house on our tax form. We're not paying property tax on it since it's not a permanent structure.
Related question - Our sole proprietorship is a farm, so we use Schedule F (Profit or Loss from Farming). We took money from the farm account to pay for the tiny house. We haven't done anything yet with the sole member LLC we created for real estate. Our farm has a gift shop, we host events, and other things that are not strictly agricultural. Those things are part of the farm operation and our largest amount of income is from farm products (Christmas trees). So....could we include the tiny house as a farm expense since it's located at the farm, or would it be a good idea to spin this off under the LLC? If so, would we use a Schedule C to claim it or something else?