How to Separate My Airbnb 1099-K Income from STR Properties (Schedule C) to Mid-Long Term Rentals (Schedule E)?

Forum|Forum|1 year ago
March 29, 2025
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I have multiple properties on Airbnb. Some qualify as Schedule C, and others are Schedule E. How do I split the 1099-K income between the Schedule C and Schedule E properties if all the income is on the same 1099-K?

Do I just put a deduction of the Schedule E expense in my Schedule C "Other miscellaneous expenses" then account for it on Schedule E as cash?

KrisD15

No, I would not expense any from Schedule C to Schedule E, simply enter as if you received multiple 1099-K and link each one to the schedule the income belongs on if you enter as personal income, or enter a 1099-K directly on Schedule C and then a 1099-K directly on Schedule E, each with the amount allocated to that schedule.

The IRS will look to see if you are reporting income, but they don't "match" the 1099-K to their copy.

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BHancockAuthor

So are you saying to put the same 1099-K info into both the schedule C and all schedule E's and adjust box 1a (gross amount) to allocate the correct amount for each?

KrisD15

Yes, exactly.

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AmeliesUncle

Back up a bit. Short Term Rentals don't necessarily mean Schedule C.

Are "services", such as maid service or meals (or maybe transportation or concierge services), provided to the tenants? That is what determines Schedule C versus Schedule E.

BHancockAuthor

"Are "services", such as maid service or meals (or maybe transportation or concierge services), provided to the tenants? That is what determines Schedule C versus Schedule E."

You are correct, that is #2 of the exceptions, however mine was Exception #1 for 2023, but in 2024 that is no longer the case for 1 of my properties...

According to: https://www.irs.gov/publications/p925

Under section "Rental Activities"

"Exceptions. Your activity isn’t a rental activity if any of the following apply.
1. The average period of customer use of the property is 7 days or less."

This statement was true for me in 2023 as my customers stayed an average of 5 days, so I reported this property as Schedule C and as a non-residential property for depreciation since its technically a hotel and not a residential rental property... it was a commercial property.

AmeliesUncle

@BHancock wrote:

According to: https://www.irs.gov/publications/p925
Under section "Rental Activities"
"Exceptions. Your activity isn’t a rental activity if any of the following apply.
1. The average period of customer use of the property is 7 days or less."

That is for purposes of the Passive rules, NOT for other purposes, such as Self Employment Tax (which is what Schedule E versus Schedule C is based on).

If "services" are not provided to the tenants, it belongs on Schedule E, not Schedule C.