the issue is aggregation. was it proper to aggregate the vacation rental with your other rental activities?
In Eger v. United States, Egers claimed an election on their federal income tax returns that grouped their 33 rental properties, including the three Resort Properties, as a single rental real estate activity. The court determined that because these rentals were rented on average less then 7 days per customer, it did not meet the definition of a rental activity and was not eligible to be grouped with the other rental activities. Therefore, the losses from the resort properties were classified as passive.
therefore, based on the above if aggregation was improper, then I would file amended returns.
