@QandA1 wrote:
that’s not true there is a specific law that disallows material participation test to be used for rentals unless they meet the real estate professional test also.
If you materially participate in your rentals as a real estate professional, then any loss is nonpassive per Section 469. The average period of "customer use" is not a factor.
There are some people, including tax professionals, who ascribe to the notion that short-terms rentals combined with material participation also results in the activity being treated as nonpassive.
I'm going to page @AmeliesUncle at this point. Stay tuned.
