Anyone have any idea on how to make this happen. Trying to offset W2 earnings with short term rental losses. There's such a thing as a short term rental loophole but don't know how to make this happen in TurboTax. Our average rental is less than 7 days and I manage it exclusively well over 500 hours per year.

Recommend going through a CPA

This does not, and should not, constitute as professional advice.

The software should walk you through Schedule E, depreciation (Form 4562), and Form 8582 if needed. If you provide substantial personal services to guests (e.g., daily cleaning during stays, meals, concierge services, or hotel-like operations) use Schedule C instead of E.

file an extension. get a real tax professional.

Diggity said:

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Well over 500 hours managing one property? Yikes.

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It seems on the high end of reasonable to me. My AirBnB runs 78-80% occupancy, which is typically 85-100 bookings per year. Cleaning averages out to roughly 1.5 hours per guest, then there is maintenance, monthly deep cleanings, trips to purchase supplies, managing the calendar, writing reviews, etc. It adds up quick, and I could see how 500 hours would be reachable.

ETA: We do our own cleaning, so the cleaning fee is our "salary."

If you don't mind me asking, what area is your AirBNB located in. I'm currently looking for 2-3 AirBNB to buy right now, and 80% occupancy rates are not something I've seen anything close to.

Diggity said:

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Sounds like buying yourself a job to me.

I would think hiring out a good chunk of that would be a better use of resources.

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Owning any business is basically buying yourself a job. Sure, I could hire stuff out (and I do hire some maintenance out), but then I have to spend time coordinating it all. Coordinating cleaning companies to within a 2-hour time period and making sure everything is done exactly the same way every time is a headache I don't need. If I have to be there to make sure it's done properly, then it's easier (and cheaper) to just do it myself.

Bronco6Gen said:

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If you don't mind me asking, what area is your AirBNB located in. I'm currently looking for 2-3 AirBNB to buy right now, and 80% occupancy rates are not something I've seen anything close to.

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Houston. Our occupancy rates have been consistently high since we started in 2018. This year we're at 72% because international guest bookings are down pretty much everywhere, although we're all booked up for the World Cup.

Wow, congrats...that is extremely good for that market

I'm just saying that the OP is essentially a .25 FTE for one property (this could be wrong of course). That seems like overkill.

I don't know how much their local market is for make-readies, but most folks can use their skills/training to make more than a maid service.