@peterloo wrote:
Note that it is not about being REP. I want to make use of the shorter rental exception under Section 469 (or 1.469- 1T(e)(3)(ii))
You really cannot have it both ways (the best of both worlds) in this instance.
If you want to use the exception in the Reg you cited (or are required to use it), then it is not a rental activity (for the purposes of the passive activity loss rules) and, therefore, the income and expenses are not reported on Schedule E (which is exclusively to report income from rental real estate and royalties).
