@Anonymous_ wrote:
Short-term rentals are covered by Section 280A and, believe it or not, when a taxpayer uses a short-term rental (aka vacation home) as a residence (i.e., uses it more than the greater of 14 days or 10% of the number of days rented at fair rental value), that is not a passive activity.
Rental income = $10,000
Management fees = $10,000
Commissions = $5,000
Loss = $5,000 which is nonpassive
I agree. To add another thought to that, some of the 'shared' expenses (for example, repairs and home insurance) would trigger the Vacation Home rules which would be a separate carryover. So being nonpassive could possibly allow a loss, the separate "vacation home" rules may suspend some or all of the loss for other reasons.
