- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
SHORT TERM RENTALS
I have a condo and am currently renting it out as a short term rental for about 275 days a year. I have a property management company.
- Are there any situations where short term rentals are not considered passive activities?
- With a short term rental, are there any situations where you are not required to be a real estate professional in order to avoid the $25,000 limitation on claiming losses?
- Would you explain this statement:
- If you do not actively manage your rental, losses are only allowed if there are profits from other passive activities.
Topics:
February 16, 2024
7:57 PM
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Get your taxes done using TurboTax
Material participation is required.
If you provide significant services to the renters, then you are essentially operating in the same manner as a hotel and you would report on Schedule C.
Otherwise, if you use the property for personal purposes more than the greater of 14 days or 10% of the days rented at fair rental value, then the rental is not a passive activity (but still subject to Section 280A limitations).
See https://www.irs.gov/publications/p527#en_US_2023_publink1000219123 AND
https://www.irs.gov/publications/p925#en_US_2022_publink1000104578
February 17, 2024
8:58 AM
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
609 Views