Sorry if this one is old & cold.
However, after casting about for a while, the only reference I can find in the Code, Regs and IRS publications appears to be in the temporary passive activity loss regulations. ((1.469-1T(e)(3) provides in part at (ii) that:
(ii) Exceptions. For purposes of this paragraph (e)(3), an activity involving the use of tangible property is not a rental activity for a taxable year if for such taxable year—
- The average period of customer use for such property is seven days or less
I note that this provision regarding short-term rentals applies for purposes of one paragraph of the passive activity loss limitation. I have cast about a great deal to find other IRS pronouncements that would indicate that the seven day rule applies more broadly, in such a way that short-term rental income would be reportable on Schedule C instead of Schedule E. That would certainly be true where services were provided, but I question whether that would be the case in a standard short-term rental (e.g., VRBO) context.
Can you provide some authority for your position in that regard?
