Short Term Rental House Hack

[Vikrant Prakash]

I am new to this forum but have seen some really great posts, advice and experiences shared on this forum. I am new to real estate investing and thinking of starting off by doing a "house hack" via renting out the unused basement as a short term rental (AirBNB, Vrbo etc) in my single family home which is used as primary residence. My local authorities allow STR once I get the necessary permits and business licenses. Based on what I have heard/read thus far, it seems like I don't need a formal legal structure such as LLC for running this is as an active business (but I may set up an LLC for asset protection, which is allowed by my mortgage lender). While the bookkeeping will likely be complicated, is the accounting/taxation on this STR based on 100% STR income/expenses allocated 100% to business and general house expenses (mortgage, utilities, depreciation etc) pro rated between STR/personal residence based on sq footage? if anyone on the forum has executed this strategy and/or if accountants/tax professionals have come across this situation, I would appreciate your thoughts and advice. Thanks in advance!