I do meet the test for material participation, and I have two rental properties, both of which have average rental days of less than 7 days. What I'm reading is that the IRS considers rental properties with average rental days less than 30 days, are no longer considered "dwelling" units, rather they are now classified as "transient" unit and need to be depreciated over 39 years as commercial property. This just doesn't make sense to me.. its not a commercial property.. but am I SOL and this is just the way it is?
