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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.
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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.
January 14, 2023
10:57 PM