Where on a tax form does the non-passive loss from qualifying short term rental go?
--on Schedule E? If so, how do I distinguish it as non-passive, so as to take the loss against my W2 and other business income?
--Schedule C? If I do that, I assume my short rental GAINS the following year will be subject to self-employment tax?
My situation: short term rental with material participation, but no extra services that would necessitate filing Schedule C. I am currently amending my 2021 return in which my first year short term rental lost 40K (I want to increase that by bonus depreciation after a cost segregation study) and gained 62K in 2022. Can I use Schedule C for 2021 and then switch to Schedule E for 2022 tax year to avoid self-employment tax going forward?
