@Anonymous_:
So if I understand your reasoning correctly, what you're suggesting is as follows: The IRS issued temporary rules regarding various exceptions to the definition of rental activity (temporary version here), but these temporary rules have expired and are no longer effective, as indicated by their omission from the permanent version of the rules (here). Because the rules have expired, the only way to apply losses against ordinary income (ignoring the $25K special allowance for individuals under certain income limits) is to be a real estate professional. Am I understanding correctly?
I have a couple questions:
- Is it possible that, rather than expiring, the temporary rules have not been formally codified and made permanent yet? It seems unlikely that the IRS would issue guidance for 2022 (nonauthoritative status notwithstanding) that explicitly mentions the rule, if it had expired.
- I'm not sure I understand the relevance of Section 280A in your earlier post? Do you mean that the 7-day exception only applies to rentals that are residences at described in that section?
I just want to make sure I understand because my taxes due (or refundable) depend heavily on this determination. I want to make sure I get it right.
