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Question

AirBNB Rental Income with Land Contract Home

Forum|Forum|2 years ago
December 28, 2023
1 reply
0 views

I've searched and searched until I've gone crosseyed, and cannot seem to get a clear answer on this.

I currently run a full-time AirBNB on a home that I do not technically own. The home is under a land contract/land purchase agreement/lease to buy contract, so there is no actual mortgage, no actual mortgage interest, etc.

What expenses can I deduct, and how should I deduct them. I don't believe that I can use the Schedule E and depreciate the home that way. Can I claim the entire monthly payment, as it is ordinary and necessary for me to conduct my AirBNB business?

I am having issues finding the answer this particular situation.

TurboTax Home & Biz Windows

Employee

You need to check the laws in the state in which the property is located. In some states, title actually passes when a land contract is executed.

If that is the case, you would report on Schedule E.

Cmo3Author

The title remains in the name of the owner/seller until the end of the listed time frame. Property taxes are still in their name as well.

Employee

Do you provide services to your renters (e.g., meals, daily maid services, et al)?

If not then report on Schedule E.