Other Tax Questions
Questions and comments on other topics covered in Fairmark.com, such as UTMA accounts, and any tax questions that don't fit our other categories.
Any decisions on airbnb and SE tax?
Posted by: Snargle, April 22, 2017 04:06PM
Have we decided, yet, whether airbnb income is subject to self-employment tax?

Have we decided what criteria would be used to make that decision?

Re: Any decisions on airbnb and SE tax?
Posted by: kaneohe, April 22, 2017 05:10PM
see #9 here [assets.airbnb.com]

"9. How to report rental income and expenses
Rental income and expenses are reported on Schedule C or Schedule E of your tax return (Form 1040).

If you are a real estate dealer who is engaged in the business of selling real estate to customers with
the purposes of making a profit or an owner of a hotel, motel, etc., who provides services (maid
services, etc.) for guests, report the rental income and expenses on Schedule C.

If you are not, report
the rental income and expenses on Schedule E. Schedule C income may be subject to self-employment
tax, while Schedule E income may be subject to Net Investment Income Tax.

Most individual taxpayers report residential rental income and expenses on Schedule E. See Exhibit A
for a copy of page 1 of Schedule E."

Even though written for airbnb, looks like a punt when addressing airbnb which is kind of betwixt and between.........

Re: Any decisions on airbnb and SE tax?
Posted by: Snargle, April 22, 2017 07:47PM
Very good. Thank you, Kaneohe.

"looks like a punt.." "kind of betwixt and between.." leaves me thinking that it doesn't really matter whether or not the rental activity is via airbnb at all...

Or maybe it's hiding under those two "etc's" in the second paragraph.

Re: Any decisions on airbnb and SE tax?
Posted by: kaneohe, April 23, 2017 02:26AM
I'm guessing it's because individual situations could be fish or fowl or somewhere in between . Perhaps you have a few "longer" term rentals a yar and it's more akin to Sch E or you could have mostly daily turnovers which more resemble hotel/motel or maybe you have a mix.
Do you then do both Sch C and E with pro-rata division of income?

Re: Any decisions on airbnb and SE tax?
Posted by: Snargle, April 23, 2017 07:16PM
I'm quite sure that the length of the rentals [average number of days per tenant] has nothing to do with whether the income from the activity is subject to self-employment tax.



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