@M-MTax is correct.
Unless "services" are provided (such as maid service or meals), it goes on Schedule E.
As a short-term rental, it can affect the passive loss rules. If it is a short-term rental AND they "Materially Participate", then it is a non-passive activity. It still goes on Schedule E, but it is non-passive.
Just because it is non-passive (Tax Code Section 469 rules) does NOT mean that self-employment tax (Tax Code Section 1402) applies. There are two separate sets of rules. It may not be considered a "rental activity" for purposes of the passive loss rules (§469), but it *IS* still a rental for pretty much all other purposes, including that self-employment tax does not apply to most rentals (unless services are provided). That means it belongs on Schedule E (not Schedule C).
I know great tax professional that disagrees with this, but a short-term rental is depreciated over 39 years (not 27.5 years) because it is used on a "transient basis".
