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Tax, SDIRAs & Cost Segregation

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Craig Lessler
Pro Member
  • Investor
  • Scottsdale, AZ
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80
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Airbnb - Active or Passive - Deductibility of Losses Schedule C

Craig Lessler
Pro Member
  • Investor
  • Scottsdale, AZ
Posted Oct 30 2019, 18:23

I have a long term rental (SFR) which I converted to an Airbnb in October 2019. My property manager is acting as the host and we have already had multiple bookings.

Questions:

1. Is the Airbnb considered "Active" so that it is reported on Schedule C instead of on Schedule E as a passive activity?

2. Provided I am to report the Airbnb activity on Schedule C, can I use the net loss (from painting, decorating, repairs, purchase of washer, dryer, furniture, bedding, linens, towels, etc) for 2019 on this activity against other active income such as W-2 income?

Thank you for input.

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