Do I need real estate professional status to be able to deduct expenses and losses from my AirBnb against my active income?

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No.

If your average stay is under 7 days for the year, then it isn’t “rental activity” which means you don’t need to be a real estate professional to take losses against ordinary income (aka W2 income) as long as you “materially participate”, which is the 100 hour test AND more than anyone else test.

I have done this before and I’m glad to walk you through it if you’re interested.

likehelpful

No, you need to file schedule c

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Either that or short term rental where you spend more than 100 hours on the property in the year and rent out your place for at least 7 days

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Short term rental = less than 7 days average stay to take advantage of the IRS “loophole”

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