this is for schedule C but would apply to a partner who provides substantial services.
If you provide substantial services for the convenience of your guests,
your short-term rentals can be re-classified as a Schedule C business
activity subject to self-employment tax. For example, the operation of
the rental in similar fashion of a bed and breakfast will typically be
considered to be the provision of substantial services.
thus for preparing a partnership return the activities would not be entered on form 8825 buy on page 1 of the 1065. then this would flow to the k-1 as business income and also box 14 of k-1since it would be subject to self-employment taxes.
what if some partners are not active. then an allocation would need to be made between page 1 and form 8825.
this is an opinion. I'm not citing anything authoritative.
