DawnC
Expert Alumni

Get your taxes done using TurboTax

1.) That is true, but see #2 - 

2.) To be all non-passive, it would need to be reported on Schedule C.    There is a special allowance of 25K (for Schedule E) of passive income to offset non-passive income.   

 

See this discussion that explains the exceptions to filing Schedule E.  

 

Tax Tips for renting out a room in your home  

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