@DawnC wrote:Material Participation Rules - The main thing with material participants is that the rental activity is considered a business, so the passive activity rules do not apply.
No, Material Participation does NOT mean the the passive loss rules don't apply.
@elel If you are using the online version, I am unsure where to indicate Material Participate if you are not seeing it. However, let's back up to see if it matters. Do you have a reason to indicate Material Participation? Is this a short-term rental (usually average rental period of 7 days or less)?
If you are not a Real Estate Professional and if this is not a short-term rental, I can't think of how claiming Material Participation will affect anything on the tax return.
