AirBnB Taxes – Doing It Wrong?

    We are seeing a drastic increase in the number of tax clients who are playing the Short-Term Rental Game.  

    AirBnB, VRBO, etc. 

    Are you also seeing a drastic increase in short-term rentals among your clients, Colleen? 

    Until recently, I thought I knew how to determine whether or not to report short-term rental property income and expenses on Schedule C or Schedule E. 

    I now believe I was something like this guy, a.k.a. “Doing It Wrong,” a.k.a. “Strong Neck McGee.” 

    Here are my adjusted and current beliefs: 

    Do we put short-term rental activity on Schedule E or Schedule C?

    –Default remains Schedule E, even if short-term rental.
    –Schedule C if taxpayer provides “substantial services.” 

    Subject to Passive Activity Loss Limitations (Form 8582)?
    — Default yes.– Not if on Schedule C.
    — Possibly not if on Schedule E, neither, if meet “Material Participation” test(s).

    If preparing tax returns with short-term rentals in the most advantageous way for your clients–while also protecting your clients (and yourself!) from IRS audits and other unpleasantries–is a priority for you, 

    We’re doing a fairly deep dive on today’s webinar on short-term rental tax issues, so that tax pros head into tax season with increased confidence on this increasingly crucial issue. 

    If you’re a Pronto Tax School Member, you have no cost access for Friday’s tax update webinar.  Simply go into your Pronto Tax School account and look for the “Last Call Business Tax Update” courses to get all the info you need to attend Friday’s live webinar.

    If you’re a Not Yet Pronto Tax School Member, you can click here to grab a membership and get this week’s update webinars included in your membership, OR you can purchase a ticket this week’s webinar with this link: 

    Last Call Business Tax Update Webinar, Friday January 13 at 1pm EST / 10am PST — click here to see the details of the offer and register for $197 while we still have seats available.

    Webinar will include extensive Q & A — so please make sure to bring any questions that are on your mind. 

    In addition to the live webinar itself, each webinar package also includes:

    • 2 hours CE / CPE (meaning, 2 hours per update, so 4 total for both)
    • The video recording of the webinar
    • All the slides from the webinar (of which there will be many)
    • $$$ prizes being given out during the webinar to the attendees who create the most value by your participation

    If you have any questions, please contact our support team via email