@seemasb wrote:
Still can't still find in the +Schedule E Worksheet" to mark other passive exceptions box. Need to convert STR loss passive to active.
The proper terms should be used; passive vs nonpassive. Earned income (which can be conflated with active income) is subject to self-employment tax in this instance (Section 1402) whereas nonpassive income is not.
If you have a short-term rental which is not subject to self-employment tax (i.e., no substantial services provided), then the income/loss is either passive or nonpassive depending upon other criteria.
If, for example, you are a real estate professional, then any loss would be nonpassive.
Otherwise, the income/loss would be passive unless you use the property as a residence, in which case the income/loss would be nonpassive. You use the property as a residence if your use of the property exceeds the greater of 14 days or 10% of the number of days the property is rented at a fair rental price (see Section 280A).
