This year my parents turn our house into a guest house. We just simply live in two rooms and turn the rest into guest’s.
So does this mean the market value of our business is the price of our house + the appliances?
By the way, our parents open this business while they are still working for a company. Does this make my parents’ self-employed?
Please help. Thanks in advance.
How will they report it on their tax return?
Schedule C (short-term rental similar to a hotel or bed and breakfast business where substantial services are performed)
or
Schedule E (long-term rental with year-long leases and no services)