Investors & landlords

This is a bit difficult to comprehend, considering the other rules applicable to rental real estate, but vacation homes (used for more than the greater of 14 days or10% of the number of days during the year that the home was rented at a fair rental) are not subject to the passive activity loss rules.

 

See https://www.irs.gov/publications/p925#en_US_2021_publink1000104578