Hello Tax Angels, I need help: I'm a single mom of 2 (5 and 10), both of which I lawfully claim, but share custody with 2 dads (IYKYK), and a homeowner in West Michigan. I'm a full time W-2, contract (Late August to early May) Lecturer at a University an hour away and teach Hybrid, so I only work in my non-res city 1 day per week for 30 weeks.

    Then, I also run an Airbnb in my home. Home is a 1099 Sq ft 4 bedroom ranch, but 1 bed/bath is in the basement, where we mostly reside to rent out the upstairs. Basement is 980 sq ft. I mostly rent weeks/weekends in the summer, but several bookings over the winter. Bought in April 2017. Owner-Occupied Airbnb.

    I technically have a Home Office in the basement as well, taking up about 350 sq ft.

    Last year I made about 18000 in the Airbnb income. 48K teaching. I do my own taxes on Turbotax–I wanted to learn about how expensing works for taxes. Out of confusion as to how to answer the questions, in hindsight over the last several years I've filed differently–there was even a couple years of having a "side business" for sewing projects for people.

    I'm wondering based on limited knowledge, so please forgive the wishy-washy line of questioning:

    1. Schedule C or E? E seems simpler and not subject to small bus tax?

    2. I work from home 6 days and in non-res city once per week–Home Office? For Teaching or Airbnb? Seems like Schedule E does not provide Home Office?

    3. Federal and State Returns, easy peasy. 2 City Taxes tho–should I be getting a refund to non-res city and paying into resident city?

    4. Best software to keep track of expenses for this situation?

    5. If I purchased a Tiny Home for the backyard as an ADU for Airbnb–would that be a new separate Schedule and would it be an expense or a depreciated asset for a "new" business or am I thinking about this all wrong?

    I want to learn and understand–can anyone help?!

    Thank you thank you in advance!

    Looking for Help Identifying Best Routes for Tax
    byu/Amazing_Passenger495 intax



    Posted by Amazing_Passenger495

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