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Taxes - AirBnB vs Traditional Rental
Hello!
I am getting ready to rent out my first property. The plan has always been traditional rentals. I like the tax benefits of it (expense deductions, depreciation, 1031 exchanges). However my realtor is really trying to convince me to consider doing AirBnB since it could potentially be higher profit margins in a perfect world.
The small amount of research I have done on the topic as it relates to taxes seems to suggest that I may be limited in what I could take as deductions and depreciation when renting short term versus traditionally. I would hate to be suckered into higher profit margins, just to see them wiped out in April!
Are there any CPAs out there that have experience with this?
Thank you,
Jonathan