@DLB262021 wrote:
As for the way the law was set up, I was discussing this issue with my congressman and he said while STR's were included in the bill, the SBA was left in charge of implementing the fine details of the program, (the paperwork and forms, etc.)
Your congressman was incorrect. It was Congress that did it.
First, let's back up and define what you mean by "Short Term Rentals". If "services" are provided, it is a business on Schedule C (and eligible for PPP). And self employment tax applies to any profit. If "services" are NOT provided, it is a rental on Schedule E (and not eligible for PPP). Self employment tax does not apply.
In the CARES Act (which first started the PPP), Congress wrote that "the term ‘eligible self-employed individual’ has the meaning given the term in section 7002(b) of the Families First Coronavirus Response Act".
In part, section 7002(b) says "the term ‘‘eligible self-employed individual’’ means an individual
who— (1) regularly carries on any trade or business within the meaning of section 1402 of such Code".
Section 1402 of the Code is Self Employment Tax (Schedule C, not Schedule E).
