The Schedule E IRS form is used to report your vacation rental’s supplemental income and loss. Note that this is used for “supplemental income” not “earned income.” Earned income from your vacation is generated actively, by offering “substantial services.” These include daily housekeeping, changing linens, conducting guest tours, or transportation.
In comparison, supplemental income is earned by providing “insubstantial services” to guests—water, gas, electricity, customary repairs and maintenance, and trash collection.