Investors & landlords

You rent out your property to earn supplemental income, but you don’t put enough work into it for the IRS to consider you a self-employed rental property manager it goes on schedule E and if AGI is over $150,000 you are subject to the passive loss rules even with material participation and no loss is allowed.

*

You provide “substantial” services for your guests’ convenience during their stay (i.e., regular cleaning, linen service, or housekeeping).  then you report on schedule C and there is no passive loss limitation.