No Option for 39-year depreciation on Airbnb income???

Forum|Forum|3 years ago
March 8, 2023
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We rent a property on airbnb and average less than 7-day stays, but it's rented out about half the year.

After reading several CPA blogs on Airbnb income from transient rentals , I understand the following:

- this is still passive schedule E income, even though the rentals are "transient," because we are not providing substantial services. (Some less knowledge bloggers seem to think that transient automatically means schedule C active income.).

- however, because of the transient nature of our rentals (less than 7 day average stay), the property does not qualify for 27.5 depreciation but instead must be depreciated over 39 years.

The problem is that turbotax is not asking for the average length of stay and is not giving the option for 39 year depreciation anywhere.

Is there a place to enter the average length of stay or a way to get 39 year depreciation???

Best answer by AmyC

1. No. You can have a rental property that is a commercial building, as required for transient renters.

2. You need to return to your property profile and select commercial rather than rental when asked What Type of Rental is This?

3. The program does not ask about units and percentages. The transient requirement includes a unit in a hotel, motel, inn, or other establishment where more than half of the units are used on a transient basis.

@KDS1723

Mike9241

when you entered the type of property for depreciation purposes you probably selected residential rental. you must select commercial and then the 39-year life will be used.

Residential properties depreciate over 27.5 years, while non-residential properties depreciate over 39 years. If the short-term rental only averages 30 days or less as an average rent period, it would classify as transient. It is therefore classified as a commercial property and depreciates over 39 years.