Determining whether the venture falls under a service or rental business hinges on the provision of substantial services; for instance, if a bed and breakfast service is offered, it must be reported on Schedule C, triggering a 15.3% self-employment tax.Moreover, personal use plays a crucial role in the classification of the property.

We do meet ups in Washington DC (Breakfast) and Alexandria VA (evening) every month! 

@Noah Bacon - can you help here? 

From my understanding, if its passive income, just a room-by-room rental, it would go on your schedule E just like any other rental. if its active, like a short term rental situation or mid-term, something like an airbnb or bed and breakfast where you're actively including extras, it would be filed on a schedule C. disclaimer, im not a tax person, so double check this with your tax pro. when you go to qualify for your next purchase, whether that's for primary or inv., using a full-doc loan... if its schedule C, you would need to do a 2 year average of this income in order to use it. its looked at as a business, and self employment income. if its schedule E, theoretically you could use the schedule E income calculations just like any other rental even after the first filing.

Real estate agents are going to have contracts that are going to save their bacon, the rest are going to flap in the wind.6) Who stands to lose the most?

I haven't heard of the "Binder" technique before, but it sounds like a great idea.As for increasing the Studio ADR, we are considering offering guests a half a dozen fresh eggs for breakfast since we have chickens. 

But the bacon the today was… meh.

@Gustavo Mendoza I lived among my guests in two bed and breakfasts for 24 years and never had any problems.

Imagine this: dirt roads with massive potholes, jungle on one side and im paying almost $100/night and barely any hot water, the water in general is dangerous.. but foreigner yuppies like me everywhere walking on the road.. breakfast place La Paleta or sthing is full of ppl and theres dogs trying to chip away at your food, other side of the road major contruction happening 2 large condotels/apartments are being built.

Quote from @Cody Bacon: Quote from @Kelsie Wadsworth: Quote from @Kelsie Wadsworth: I just joined FlipSystem.