If you would like to get started on your income tax return with AirBnb rental activity, start here.
Depreciation is tricky. You have to back out the value of the land, include all your improvements before you started renting the property out, and figure out the useful life of the asset your are depreciating. You’re probably thinking the useful life is 27.5 years since your AirBnb rental is residential real estate. Wrong! A dwelling unit must be classified as commercial property, not residential property if its occupied on a transient basis (IRC 168(e)(2)(A)(ii)(I)). But what does transient basis mean? Let us help you figure this out.