What Triggers Self-Employment Tax on Short-Term Rentals

[Wendy Vaidic]

I've read conflicting information about what triggers you to have to pay self-employment tax on your short-term rentals.

There seems to be a consensus that the following does:

Airport Transportation

Providing cooked meals

Offering Tours

Cleaning during the guests' stay

Decorating the property for a party as a service

I'm not sure if these would cause me to have to pay self-employment taxes, as I've seen these items on a couple of lists but not most:

Providing a coffee station

Providing a welcome basket with food items

Providing bikes and kayaks for the guests to use

Does anyone know where the line is of what you can and cannot do and provide?

[Michael Baum]

Hey @Wendy Vaidic, I am not a tax expert, but I have spent substantial time researching some of this. I do have a CPA that handles all our taxes.

If you are providing services, like tours, cooking meals, driving folks around, cleaning during the guests stay, then you will fall under schedule C and pay the taxes.

Leaving things for folks like a welcome basket, coffee, bikes etc does not do this. Things like that do not trigger the IRS rules. Any of these would be no different than leaving towels, toilet paper etc.

As for decorating, I would think that as you referenced it, then yes it would be like you are running a venue. If you just decorate for the holidays for guests, then no.

IRS publication 527 should answer all your questions - https://www.irs.gov/publicatio...

This is how I understand things, but I would work with a CPA on all this. I am just a somewhat random internet guy.... :)