This is actually commendable that:
1) There is some form of guidance related to this issue
2) That the guidance has been issued "quickly" (relative term given it is Treasury and IRS we are dealing with)
3) The hours threshold is below the general 500 hour rule for material participation
The key is, though, rental property owners need to make sure they have the records up front, but I guess the statement that must be attached to the return under penalties of perjury SHOULD force this record keeping.
Other than that, this is taxpayer favorable.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
