I rent an apartment for the sole purpose of renting it to guests via AirBnb. I registered a trade name expecting to identify expenses and income as Business Income.

[alunse]

I rent a bachelor apartment for the purpose of renting to guests at a nightly rate. I do not live at said apartment, and it is occupied about 75% of the year. I expected to identify profits as business income, and also to deduct expenses such as rent, internet, supplies, laundry etc. I also began property management activites for separate property in December. To this end I registered a business trade name and identified business activities as Property Management. Other users have indicated that AirBnb is regarded as Rental Income and not Business Income. How should I identify my expenses and income?

[alunse]

It seems like T776 is aimed at people who OWN the property they are renting. I do not own the property, I rent the apartment and I sublet it to others. So each month I have 100% of Rent and Utilities etc as an Expense. I do not see any box/item/line provided for cost of Rent as an expense.
Should I put it in "Other Expenses; Specify:" or should I be claiming this income in a different way?

[IntuitRochelle · Accepted solution]

Hi alunse,

It is in fact considered rental income. You need to claim both of them as rental properties. So go ahead and claim both of them the same way.

Hope this helps!

[alunse]

See my comment above, I do not own the property and am not sure how to claim the expense of rent that I pay.