@CarlandDiane0, yes I also saw that H&R Block recommends schedule E, and again, that's what I first had in mind. I might quiz my CPA again about this, as I only want to know what's "right".
However, here in my Prescott AZ local laws , they distinguish between hosts who are not on the property (and they have to jump through hoops with inspections etc...to get the permit) and those are characterized as vacation rentals.
But for hosts who are on site (like me), it's much easier to get the permit. Interestingly enough, the second group (on site) gets lumped in with the hotel people. so weird, isn't it? but I take it from there that our continued presence is construed as service, thus schedule C.
will be interesting to see how it all needs to get clarified within the next year or so.In the meantime, it probably doesn't matter too much to the IRS if hosts file schedule E or C , as long as they get their $$, but it sure would be nice to have a clear answer.