@Anonymous_ wrote:
I don't believe the length of the rental period, alone, is controlling for the purposes of the recovery period.
The definition for a "dwelling unit" for a Residential Rental Property (27.5 years) at §168(e)(2)(A)(ii) includes this requirement: "does not include a unit in a hotel, motel, or other establishment more than one-half of the units in which are used on a transient basis".
Rulings say a short-term rental (30 days or less ... or is it "less than 30 days"?) are "transient". Therefore it is not Residential Rental Property.
EDIT: But you do have a point: It needs to meet the 80% rule from "dwelling units". Hypothetically, the long-term rental could still provide over 80% of the income, which would qualify the entire building as Residential Rental Property. But if the short-term rental provides over 20%, the entire building would be Nonresidential Real Property.
