@AmeliesUncle wrote:
I am trying to get the OP's question answered. The OP said average rental is less than 7 days, and no services.
No services means Schedule E. But less than 7 days (and Material Participation) means it is non-passive, right?
As the OP asked, HOW do you tell that to TurboTax (without going into Forms Mode).
You are correct; you need Forms Mode to make that particular selection.
However, do not blame the TurboTax developers (or legal) because they are most likely just reading the regs and applying them literally (broadly or overbroadly, if you prefer).
The relevant reg states that rental periods of less than seven days are not treated as rental activities and, hence, get Schedule C treatment (i.e., Schedule E is used to report income or loss from rental real estate, et al).
Again, we have had this discussion before about this position, and I agree with your position, but there are many others who diverge. On their side, the reg could simply have stated that the activity is nonpassive but, rather, the reg states it is not even a rental activity (and if it is not a rental activity, how could the correct treatment be to report it on Schedule E?).
