I then classify each of them. 

I would appreciate your input.Also, from what I saw, would I be correct in classifying it as a B property in a B area, or do you see otherwise?

The second benefit is because I am classified as a RE Professional, we have realized a ton of tax savings against her K1 income.

Either way, the IRS will classify it as earned/ordinary income

That way, when you reconcile each month, you can categorize each transaction (repairs, paint, cleaning, etc) and classify each transaction to a property (123 Main Street, 123 Easy Street). 

If you get a bill from the utility company, he/she will input the invoice into the software and have a date planned on when to pay it.At the start of the month, he/she will send invoices to your customers/tenants regarding payment of rent.2) The other is the type that is recording the transactions that occured in the past.I.E. after the end of the month, you may have 10 transactions between rental income, bank fees, repairs, taxes, mortgage payment which the bookkeeper has to classify.

Vacation Rentals are classified as a business and require commercial insurance. 

Multiple courts have opined on the topic, and have all come to the same conclusion, that it would take more than simply providing a rental home to someone in order to classify as harboring them. 

Is it possible to change the way we are classified on their end?

And yet the state never gets that far in this pursuit of classifying Airbnb-STRs as commercial properties.I think there are two headwinds. 1.