@Anonymous_ wrote:
Understood, completely, but I think the issue mentioned later in this thread is whether the rental is reported on Schedule C or E. Again, I think that is what @gmyoung is alluding to with respect to the reporting issue.
Ah, okay, I misunderstood that.
I completely agree with Tagteam that it is NOT subject to Self Employment taxes. Even if it isn't considered a "rental" for purposes of passive losses, that has nothing to do with the fact it *IS* a rental for other purposes including for self-employment tax purposes (rentals are not subject to self employment tax).
Schedule C will impose self employment tax on any profits, so that is not appropriate because it is still a rental for purposes other than passive losses. So it belongs on Schedule E, even if it isn't considered a "rental" for purpose of Passive Losses.
When reporting it on Schedule E, *IF* you feel the less-than-7-day thing makes it non-passive, then you should (1) use the CD/downloaded version of TurboTax, (2) enter the "Forms Mode" and (3) on the "Schedule E Worksheet" check the "Other Passive Exceptions" box.
