You've got a Sec 469 thing and it's a problem because there has been HEATED debate on both sides of this thing. One side says the rentals are regular SCH E rentals and the other says they are a SCH C business. Some of the SCH E folks say that you put rentals there and only put income on SCH C if you provide services to renters. Some of the SCH C folks say you put all the income there and pay self employment taxes BUT your losses are still passive (HUH?). Anyway, good luck with this because you're going to get 8 different opinions if you ask 5 different people. I say put it all on SCH E and let the chips fall where they may UNLESS you're in the business of running something like a hotel instead of a short term rental property.
