AirBNB depreciation

Are you ure this is not a Schedule C activity? Do you furnish bedsheets, towels, carpet cleaning, etc?

That would make a difference between a depreciable life of 27.4 vs 39.

The common areas such as kitchen, living room, perhaps a bathroom are not depreciated.

Woops. s/27.4/27.5/p

Yes, a Schedule C activity means you spend lots of time on the activity, which is not the case here.

Time does not matter. It is whether one provides substantial services. You could hire someone to provide those services and spend very little of your own time on it.

If the portion rented does not constitute a separate dwelling unit, the activity is probably subject to the IRC 280A "vacation home" rules. As such, depreciation is only deductible to the extent that related income exceeds (first) allocated interest and taxes, and (second) allocated portions of other expenses (utilities, etc.). Disallowed amounts can be carried forward and applied in future years subject to the same "tiered" system.

If the average rental term is not greater than 7 days, then I believe it is deemed a NON-residential rental for depreciation purposes.

MTW