What tax Schedule should I use : E or C?

[Mark524]

We have three Airbnb houses, then manage one for our neighbor. My tax preparer is insisting that each house is its own little business and each needs a Schedule C. Then it's more confusing because Airbnb sent a 1099 but it's not broken down by house.

When I looked up guidlines, it actually says that if we don't provide cooking or maid service, they can actually all go on a Schedule E as individual properties, but all the income and expenses bunched into one. Help! I'm so confused and frustrated. How are you all doing it?

[Aida92]

I found this article helpful

https://www.hrblock.com/tax-center/wp-content/uploads/2018/05/airbnb-taxes.pdf

I am new to this and scared about taxes. Schedule e if no substantial service such as breakfast or linen maid changes daily qualifies you for schedule e, your accountant may be wrong, look up the IRS info as well.

[Mike-and-Di0]

Who files section C or section E this is very confussing..??? Aida I have that article too and am still getting push back from my accountant because of the section that talks about the 7 day rule. when you answer that you space is rented for an average of 7 days or less (which mine & I would think most of us are) it puts you into the Non-passive activity, although the flow chart and discription below it puts me at a passive activity.??  

[Rebecca181]

@Mark524 I spoke with the head lawyer at Nolo who wrote a book on this subject and he himself spoke directly with the IRS about this controversial issue. My suggestion is that you have an H&R Block rep who is knowledgeable in Airbnbs / short term rentals do your taxes - they seem to have the best understanding of how the IRS views this. A schedule E may also be filed as a 'business' versus 'residential' and that's where it gets tricky - whether to file this way, or to file as a schedule C (which is required if one is providing 'special services'). So it may be that you will still file on a schedule E - but as a 'business'. Hope that helps!

[Sha-Sha0]

We lost all our rents due to pandemic and can apply for help if we send in a schedule  C but we do schedule E passive income so are not eligible but it is definitely not passive,it is  much work!!