Depending on what type of rental activity you are engaged in and how you rent your property you could be considered a host or a landlord. Hosts typically rent their properties on a short-term basis through platforms like AirBnB. Landlords typically rent their properties on a long-term basis independently through websites like Craigslist or Zillow. Based on your classification, you may be entitled to different deductions.
Gloria rents her apartment from a landlord and periodically makes her home available on Airbnb when she goes on business trips. Gloria would be considered a Renter / Host and would generally be allowed to deduct her rental operating costs when she files her tax return, however, she may be subject to passive activity loss rules.
Sarah owns her house and rents out her guest house about six months out of the year through Airbnb. Sarah would be considered a Homeowner / Host and typically would be allowed to deduct the portion of her homeowner overhead and operating expenses related to her rental activities, however, she may be subject to passive activity loss rules.
Gina is a landlord who rents out her second home year round. She markets her long-term rental on craigslist and in the local paper. Gina would be considered a Landlord and typically would be allowed to deduct the overhead and operating expenses of her second home.
Jim has a second home that he rents out on a short-term basis independently. Since Jim is not using Airbnb or VRBO to rent his property, he would be considered a landlord and would typically be allowed to deduct the portion of overhead and operating expenses related to rental activity at his second home, however, he may be subject to passive activity loss rules.
Faraz has a second vacation home in Florida that he rents out through a local agent and a management company. Even though Faraz is not directly involved in booking or managing his rental, he would be considered a landlord, not a host, and be eligible to deduct a portion of his homeowner and operating expenses, however, he may be subject to passive activity loss rules.
