Is income from furnished rentals (AirBnb) passive income?

[Kathy Henley]

This is my first year to try furnished rentals and want to be prepared for the tax man. Who pays self-employment tax? What qualifies for passive income?  Has anyone looked into furnished rental income? Is it passive? 

Thanks

[Dmitriy Fomichenko]

@Kathy Henley, normally rental income is considered passive, however there are following exceptions when rental income is considered business (or active) income:

• The average period of customer use is seven days or less
• The average period of customer use is 30 days or less and significant personal services are provided with the rental.

See Treas. Reg. § 1.469- 1T(e)(3)(ii) for reference.

If your income is considered active or business income, you can utilize Solo 401k to shelter it from taxes, the same subject came up in this discussion, you may find it beneficial:

https://www.biggerpockets.com/forums/51/topics/527...

P.S. I'm not a CPA, just sharing my knowledge.