jlaker66
Returning Member

PA State Tax - For-Profit property

Hi, using Turbo Tax Premier, and I own a rental property.  When doing the Pennsylvania taxes, Turbo Tax asks if this is a for-profit property, and Turbo Tax help offers the text below, but it's not clear if the listed three conditions ALL have to be true (meaning, 1 AND 2 AND 3), or if ANY of them are true (meaning, 1 OR 2 OR 3).  Numbers 1 AND 2 apply to me.  3 doesn't.  

 

For-Profit Rental Property

Your rental is considered a for-profit (business activity) rental when:

1) You offer the use of your property with the intention of making a profit.

2) You lease your property continually, not for limited periods of time during the year.

3) You offer your property on a commercial basis to others and at least one of the following applies:

- The average period of customer use is 30 days or less
- The property is made available for use only during defined business hours
- You provide significant services (i.e. housekeeping, room service, valet parking, transportation services) to your tenants
- You incur significant operating expense in making the property available for lease
- The leasing activity is incidental to a real estate sales business

 

Thanks!