@MindyB wrote:
if your personal use of the home was for less than 14 days (or less than 10% of the days it was rented), the IRS treats the property primarily as a business.
The IRS provides for a "special allowance"; a deduction of up to $25,000 in losses if there is active participation and the owner has MAGI of less than $150,000 (the $25,000 starts to phase out at $100,000).
Further, if the rental is used for personal purposes more than 14 days or more than 10% of the days rented, which is greater, then the rental is no longer treated as a passive activity.
