How to claim 2018 startup expenses for Airbnb rental that will begin operating in 2019

Forum|Forum|7 years ago
January 16, 2019
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Hi, beginning in April 2019, what is now my primary residence will become a full-time Airbnb rental. I spent a couple thousand dollars towards the end of 2018 buying supplies for the new rental. This includes items such as premium mattresses, a smart deadbolt for keyless guest entry, guest towels and linens, etc. I didn't have any rental income in 2018. What form do I use to deduct these startup expenses?

Carl11_2

Employee

You will NOT report anything for this on your 2018 tax return. Not one penny. But do keep all your receipts and other paperwork. Startup expenses are claimed in the first year you are "open for business", and it does not matter what year those startup expenses were incurred. So since you were not "open for business" on or before Dec 31, 2018 you have *nothing* to report concerning this, on your 2018 tax return. Not one penny. You'll deal with it on your 2019 tax return when you file it next year. *KEEP* *YOUR* *RECEIPTS*.