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Understanding the Tax Treatment of Short-Term Rentals: Schedule C vs. Schedule E
Short-term rental income is taxed differently based on guest stay length and services provided. Rentals with significant personal services and stays of 30 days or less are reported on Schedule C as active business income, subject to self-employment tax. Rentals with shorter stays and minimal services are reported on Schedule E but may still be non-passive. Understanding these rules helps hosts maximize deductions and avoid tax traps related to passive loss limitations.

Christian Wolff
Sep 285 min read
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