Self-Employment Taxes (Medicare and Social Security Taxes)

[Jake Morin]

Good morning all, 

Hope everyone is enjoying the busy season. I have been reading a few posts on BP forums (that are 3-5 years old) about self-employment taxes which state that if your average stay is less than seven days then you need to pay SE taxes, no questions asked. I have also been reading the "Every Landlord's Tax Deduction Guide 16th Edition" (most recent addition) and it doesn't mention anything about the less than seven days rule. This book just says that you don't have to pay SE taxes unless you provide "substantial services" like a hotel or bed and breakfast (maid service during stay, food, or concierge). This book is much more recent and maybe they eliminated the 7 days rule from the tax code. I will speak to an accountant but I also wanted to see if anyone had any thoughts. Bottom line, are short term rentals with average stays less than 7 days automatically required to pay self-employment taxes?

This is the original post and replies that made me think we DO have to pay SE taxes

https://www.biggerpockets.com/forums/51/topics/456560-long-term-rental-vs-short-term-rental-taxes

This is a link to the article that they reference written by Brandon Hall 

https://www.biggerpockets.com/blog/2015-07-05-tax-impact-airbnb-short-term-rentalsinvestors

[John Underwood]

No SE taxes, you just use schedule E for filing taxes unless you are providing substantial services.