Airbnb affecting early retirement social security

Ok,Im going to my CPA in June to do my 2015 and 2016 taxes. I am going to get the definitive word on collecting early ss and airbnb income.So I will report back!

Well it will be different for every state and every host. My CPA won’t let me take Air as a business, resulting in a schedule E. Schedule E is considered passive income and should not effect your SS. But there are some CPAs, including ones who posted on this board, who disagree with that and will do a schedule C for your Air. I think this may be considered a bit controversial.

I will find out soon. I trust my CPA he was also a lawyer I’m really hoping I can collect my Social Security finally I don’t want to wait

My CPA considers it Passive Income, as well.

I bet short term rental is not passive income if you’re audited. LOL

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Just to put my two cents in. Retired from 42 years of bean counting and over 20 years of long term renting. My husband and I have 2 LLC’s and employ a CPA for our tax returns. Airbnb is passive income and filed on a schedule E. This means for social security purposes it is NOT income against your entitlements. It is treated the same as long term rentals. I do draw social security and it has not affected my income. Of course, you should always consult a trusted and qualified tax professional for your particularly circumstances


AirBnB covers a multitude of different situations, not sure how renting by the night is passive? Are Hotels generating passive income?

This is a CPA phrase for things like rental income. Something that is not earned in a job or wages

I hope it will go schedule E; Im tired and want to go down to 2 days a week or just retire from job!But would not these rules on fed taxes exist for the entire US since it is federal state law?

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Yes. I chose to put AirBNB on a schedule E based on the IRS guidelines and two publications put out by the “big” accounting firms.

@KKC - I couldn’t find what country that website covers - am I correct that it is the US?

Diamond, your CPA will have you do a schedule E. I guarantee it. You would have to fight them to get a schedule C.

AirBnB is just a booking service, I have two properties, income wise one is active, one passive.

The booking service does not determine the nature of the income.


Yes, he’s US…

It’s just a website, I’m sure I could find another that says STR is passive income.

Here is the relevant IRS publication. There is no doubt in my mind that my airbnb is active income because I’m managing it myself, I do almost all the maintenence, repair, and cleaning and the average stay is less than 7 days and I live here.

My accountant made the mistake doesn’t get you off the hook for any penalties or interest you pay if audited. The key is to never be audited. LOL.

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According to my CPA, you have to be offering active service like a hotel… cleaning daily, offering hot breakfast etc., operating more like a hotel or licensed B&B. I didn’t qualify for that in any way, according to my CPA. There were some members here who are CPAs who DO file you as schedule C. I think their names are @Levee_App. They can better answer this!

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We are just going to be in disagreement on this one.

It’s not that I disagree… I wanted a schedule C. I’m just relating what my CPA told me. If I don’t want to do an E, I need to find a new CPA.

To say we are disagreeing is incorrect. I’m disagreeing with your CPA.

Is yours letting you do a Schedule C?
In the end, I am glad mine makes me do the E. if you ever go to refi, your mortgage company will see what you’ve been up to and possibly deny you. Or worse. Your mortgage is based on residential, not commercial, use of your property. Remember we had that host here who got into a world of hurt when, after reviewing their tax returns for a refi, their mortgage company suddenly raised their fixed residential rate to a commercial one? Extreme case but it could happen.