@EricUT03
The IRS classifies taxpayers as engaged in a trade or business if they own rental property where the customer stays an average of seven days or less. To receive a current deduction for losses incurred in such an activity, the taxpayer must meet all of the material participation requirements found in section 469 related to passive activities. A taxpayer must participate in the activity more than any other individual and must maintain accurate records of participation, excluding investor-related activities.
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The IRS has denied the deduction in cases where taxpayers failed to maintain records supporting material participation.
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Turbotax has a defect in that even if you check material participation, there is no question about short-term rentals so it's treated s any other rental real estate as passive. the trick is to check the other passive exception box.
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note that if you provide significant services like an AirBNB the reporting is done on schedule C not E.
