Investors & landlords

For the OP:   You need to go into "Forms Mode", go to the Schedule E Worksheet, and check the "Other Passive Exceptions" box.

 

 

And just to clarify for the OP and any other readers what Tageam and I are talking about:

 

The Regulations for PASSIVE LOSSES say that a rental for less than 7 days or less is not considered a "Passive Activity".  But that is under the rules for PASSIVE LOSSES.  So it is not a "rental activity" for purposes of Passive Losses.

 

As Tagteam and I agree, because no services are provided, it still properly goes on Schedule E.  It IS still a rental, but just not a rental for purposes of the Passive Loss rules.  

 

Schedule C is not appropriate because it is not subject to Self Employment Tax.  It IS still a rental, and the rules for Self Employment Tax don't apply to rental (unless services are provided). 

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