I have several rental properties I file with schedule E.
Did a like kind exchange on one to buy a condo in vacation spot. Owners under HOA rules are not allowed to live full time in the property. The HOA provides a rental program for owners, and hires a management company to administer short term rentals (less than 30 days), provide cleaning and housekeeping service for guests (included in their resort fees.). They also pay occupancy tax to the county, manage reservations, payments, etc. and take a whopping 50% of rental revenue. Guests can also purchase lift tickets and massage through the rental management company (which I do not receive revenue for.) No meals are provided other than coffee in reception area. Because this is a Hotel/Condo style property, I was told that even though I am not providing services personally, by arranging for a management company to provide personal services for guests. Management company provides me a 1099 at end of year with breakdown of costs. Do I have to report this on Schedule C because of the personal services management company performs for guests? If so, since this is a residential property, how do I depreciate? 27.5 years on schedule C? or do I have to consider this commercial property? Thanks in advance.
