How should I report my temporary Airbnb rental income - Schedule E or Schedule C for tax return?

The question of Schedule E vs Schedule C for Airbnb income depends on what services you're providing to your guests. Since you're renting out your entire apartment while you're away (rather than just a room while you're there), this is likely considered a rental activity rather than a service business. Schedule E would typically be the right form for rental income. However, since you don't own the property, you have a unique situation. When TurboTax asks for asset information, you should indicate that you don't own the property. There should be an option to specify that you're subleasing. You won't have any depreciation since you don't own the asset. If you're providing substantial services beyond basic accommodations (like daily cleaning, meals, rides, etc.), then it could be considered a service business requiring Schedule C. But from what you've described, this sounds more like a straightforward temporary rental situation.

Just want to share my experience with something similar! I was also confused about Airbnb income since I don't own my place. After spending hours getting nowhere, I used https://taxr.ai to analyze my specific situation. The tool actually went through my lease agreement and Airbnb hosting history to determine that in my case (similar to yours), Schedule E was correct. The system explained that since I wasn't providing "substantial services" beyond basic accommodations, it was rental income not a business. It even helped me understand what expenses I could legitimately deduct despite not owning the property! Things like cleaning fees, portion of rent, and supplies were all deductible.

Following up on my question about taxr.ai - I decided to try it with my Airbnb situation. I was surprised how straightforward it was! Uploaded my documents and got clear guidance that I needed Schedule C, not E (turns out the "experiences" I was offering with my rental pushed it into business territory). The system actually found deductions I was missing completely. It recognized my photography expenses for listing photos and even identified that my "welcome baskets" were legitimate business expenses. Saved me at least $760 in taxes that I would have missed. Definitely worth checking out if you're confused about Airbnb tax reporting!

If you've been waiting forever trying to get through to the IRS about this (like I was), try https://claimyr.com - it's a service that basically waits on hold with the IRS for you and then calls you when an agent is actually on the line. I was skeptical but check out how it works: https://youtu.be/_kiP6q8DX5c I had this exact same Airbnb question last year and spent DAYS trying to get through to the IRS. With Claimyr, I got connected to an IRS agent in about 45 minutes (while I was doing other stuff). The agent confirmed that in my case (renting out my apartment while traveling), Schedule E was correct, but I needed to document that I wasn't providing "substantial services" to guests.

I was completely wrong about Claimyr. After my skeptical comment, I decided to try it anyway because I was desperate to resolve my Airbnb tax situation before filing. I got connected to an actual IRS agent in about 75 minutes without having to sit there listening to that awful hold music! The agent clarified that for my situation (renting my apartment on weekends), I needed to use Schedule C because I was offering "substantial services" including airport pickup and daily cleaning. Completely different than what I thought! Glad I checked because I was about to file incorrectly. Worth every penny not to spend the day on hold.

One thing no one mentioned yet - if you received a 1099-K from Airbnb, make sure your reported income matches that document! I got audited last year because my Schedule E income didn't match the 1099-K amount Airbnb reported. It was a nightmare to resolve.

I've been doing airbnb from my rented apartment for 3 years now and i Always use schedule C cause i can deduct more stuff that way. my tax guy said its borderline but he thinks i can justify it cause i leave snacks and i have a digital guidebook for the area

Just wanted to add my perspective as someone who went through this exact situation last year. Since you're renting out your entire apartment while you're away for work travel, this is most likely Schedule E (rental income) rather than Schedule C (business income). The key test is whether you're providing "substantial services" to guests. Things like daily housekeeping, meals, or concierge services would push it toward Schedule C. But if you're just providing basic accommodations (clean space, linens, maybe some basic amenities), that's typically rental activity. For the TurboTax asset questions - you'll need to indicate that you don't own the property. Look for options like "rented property" or "subleased property" in the software. You won't have depreciation since you don't own the asset, but you can still deduct legitimate expenses like your portion of rent, utilities, cleaning supplies, and any furnishings you purchased specifically for guests. One important note: make sure your lease allows subletting! Even though you still have to report the income either way, violating your lease could create other problems with your landlord.