Airbnb Self Employment Taxes (how to avoid?)

[Max Gupton]

Thinking about listing my in-home apartment on airbnb and learned that airbnb income can be considered "active", not "passive" in the eyes of the IRS and results in the owner having to pay SE taxes on top of income taxes. Anyone have any good ideas on how to avoid SE taxes (legally)? I've read that providing "substantial services" qualifies you as running a business, similar to a hotel. A coffee maker/fresh towels at the beginning of a stay doesn't sound "substantial" to me, but then again, I'm not an IRS agent... What if you hire a management company to manage the airbnb rental? can you take the stance that the management company is providing the services, therefore keeping your involvement as passive instead of active and avoiding SE taxes? Thanks!

Substantial services:

• Changing linens
• Providing fresh towels
• Cleaning the rooms during a guest’s stay
• Providing hotel-like conveniences such as a coffee maker and coffee
• Providing vehicles, bikes, or excursion options

[Dmitriy Fomichenko]

@Michael Plaks is the expert in the field, what do you say Michael?