"Are "services", such as maid service or meals (or maybe transportation or concierge services), provided to the tenants? That is what determines Schedule C versus Schedule E."
You are correct, that is #2 of the exceptions, however mine was Exception #1 for 2023, but in 2024 that is no longer the case for 1 of my properties...
According to: https://www.irs.gov/publications/p925
Under section "Rental Activities"
"Exceptions. Your activity isn’t a rental activity if any of the following apply.
1. The average period of customer use of the property is 7 days or less."
This statement was true for me in 2023 as my customers stayed an average of 5 days, so I reported this property as Schedule C and as a non-residential property for depreciation since its technically a hotel and not a residential rental property... it was a commercial property.
