STR Owners: This One Tax Classification Mistake Can Cost You 15.3%

[William Thompson]

Real estate investors — this is one mistake I see that can quietly cost thousands.

- Are you reporting your rental activity on Schedule E or Schedule C?

Most rental real estate belongs on Schedule E, which typically means no self-employment tax.

But if your short-term rental starts looking more like a hotel — think daily cleaning, frequent guest services, or “concierge-style” add-ons — you might be pushing the activity toward Schedule C.

And Schedule C can trigger 15.3% self-employment tax.

Same property.
Same bookings.
Very different tax outcome based on classification.

Smart investors don’t just track income…
they track how it’s classified.

STR owners — are you filing on Schedule E or Schedule C right now?

[John Underwood]

Schedule E