@AmeliesUncle wrote:
But if the short-term rental provides over 20%, the entire building would be Nonresidential Real Property.
I live in SWFL and have for years. I have owned what would be considered short-term rental properties of various types (primarily condos and houses).
I also know absolutely gobs of lawyers (down here) who are familiar with tax law, CPAs, and just general tax accountants and none of them use a 39-year recovery period for the rentals (theirs or their clients) unless services are provided (and then the rental is reported on Schedule C as a business).
I really doubt whether the IRS would get tweaked about this particular scenario anyway and, apparently, they haven't thus far (i.e., where are the tax court cases, PLRs, etc.?). Let's face it; Section 469 and the Regulations promulgated thereunder are an absolute mess, put together like a patchwork quilt, particularly with regard to this subject and I would bet the IRS doesn't want any part in litigating 27.5 v 39.
