Most CPAs get this wrong
Summary
AI-generatedFiling STR income on the wrong tax schedule (Schedule C instead of Schedule E) can result in paying an unnecessary 15.3% self-employment tax. Even with active management, the IRS typically treats STRs as passive rental activities for tax purposes.
Key insights
Even if you actively manage your STR and materially participate (100+ hours), the IRS still treats it as a passive rental activity for self-employment tax purposes.
Mistakes to avoid
Filing STR income on Schedule C instead of Schedule E results in paying an unnecessary 15.3% self-employment tax.
Tools & resources
STR Tax Strategy Trainingcourse
Free training that breaks down the full STR tax strategy (including bonus depreciation, cost segregation, and material participation).
Frequently Asked Questions
Curated by Learn STR by GoStudioM · Summary & key insights generated by AI · Reviewed by editorial