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Updated almost 8 years ago on . Most recent reply

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Luke Carl
#3 Short-Term & Vacation Rental Discussions Contributor
  • Rental Property Investor
  • Tennessee Florida
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Airbnb 1099 and Schedule C

Luke Carl
#3 Short-Term & Vacation Rental Discussions Contributor
  • Rental Property Investor
  • Tennessee Florida
Posted

I've posted this question on the Tax forum and it seems to be a gray area. We've managed to scale the business pretty quickly this year to 5 STRs. Cabins in the Smoky Mountains. Pigeon Forge and Gatlinburg. I'm likely to get a 1099 bigger than my day job. 

I've asked 4 CPAs Schedule C or Schedule E. 

3 said C

1 said E because I'm not offering "daily services" such as maid service or breakfast.  I was told not to hire the guy that said E. 

My question is... since they're under 7 days per rental... am I subject to filing this income under Schedule C and does that mean I'm subject to self employment tax... therefore defeating the purpose of investing in real estate not to mention doing all this extra work communicating with guests and dealing with cleaning crews and scheduling??

Do I need to 1099 my cleaning crews? I'm pretty sure that would send them running. 

Someone on here has to be self managing AIrbnb and getting a healthy enough 1099 to be able to answer help me. 

If I am filing Schedule C is there some loophole to avoid self employment tax? What if wife is real estate professional? Which, in my case is the true, but is it worth it to make her a pro?  What does it mean to make her a pro? 

Currently reading loopholes of real estate but he does not cover STRs. Figures. 

 I have a meeting with a new CPA next week but I want to educate myself enough to know if he knows what he's talking about or not. 

Thanks! 

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Alexander Rakita
  • Investor
  • Cooper city, Fl
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Alexander Rakita
  • Investor
  • Cooper city, Fl
Replied

I think Ben Leybovich goes over in his book. You might want to take a look there. Or just ask him directly

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