Is your Airbnb a passive or non-passive activity?
The difference between passive activities and material participation or non-passive is most important when it comes to losses, because losses from passive activities may be limited, while losses for individuals who materially participate in their businesses are not limited. This is a significant point for STR host who currently arbitrage or those looking to grow their business. **Most will file Sched C and be allowed to reduce their taxable liability. Taxes are the center of gravity and in my opinion should be at the forefront of any plan to open a STR which means you shouldn’t jusy H&R block it…find a competent CPA or accountant that understands STRs so you can build a tax plan and legally maximize your deductions.