Air BnB Tax Question?

Short term rentals (aka bed & breakfasts) are subject to local hotel occupancy taxes and are reported to the IRS on Schedule C. They do not qualify for rental income status. If the unit is rented for less than 14 days out of the year, the income and expenses do not have to be reported at all. Because the owners are also providing services, it is a business and not a residential rental.

"If you rent out a dwelling on Air BnB, then the profit from that is subject to self employment tax." This is inaccurate. Many times it's considered rental income, not self-employment income. The IRS has criteria that makes the determination.

No, rental income is not subject to FICA taxes. Rental income goes on Form 1040, Schedule E. It is classified as passive activity income and is not subject to FICA taxes.

Any landlord will te4ll you that renting property is anything but "passive" but that's how the law defines it. Cleaning up between tenants, either long or short term, does not change it to earned income subject to FICA taxes.

this would not be a Sch C operation for you to pay self employment tax, this would be Sch E rent income

no. Motels don't pay se tax on rentals either.