@Dillingham PLLC wrote:
@AmeliesUncle wrote: That comment/rule is for determine if it is a rental for purposes of the Passive Loss Rules. Short term rentals ARE still a "rental activity" for other purposes.
This is just an assumption about 1.469.1T(e)(3)(ii), possibly because it says "for purposes of this paragraph" - but you have to back up and look at the whole picture.
§ 1.469-1T General rules (temporary).
I'm thinking @AmeliesUncle would like to refrain from arguing this point, but you might want to chew on the following, @Dillingham PLLC.
When a subsection of a section of the Code or Regulation states, "for purposes of this paragraph", that is precisely what it means; it generally is not applicable to other sections of either.
Moreover, see Section 7805(e) with respect to the expiration of temporary regulations and this one has been around for quite some time.
Finally, note that, although not authoritative, neither the instructions for Schedule E nor Publication 527 mention rental time periods. Rather, both simply state that the activity belongs on Schedule C if the taxpayer provides substantial services or is a real estate dealer.
