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for the short-term rental, what was the average rental period and did you provide substantial services to the renters?    Generally, services are considered rendered to the occupant if they are primarily for his convenience and are other than those usually or customarily rendered in connection with the rental of rooms or other space for occupancy only. the IRS ruled that a landlord who rented furnished vacation beach dwellings and rendered services “for the comfort and convenience of his guests in connection with their recreational activities”—including maid services, swimming and fishing instruction, mail delivery, furnishing of bus schedules, and information about local churches—rendered services primarily for the occupants’ convenience. Generally, services are considered rendered to the occupant if they are primarily for his convenience and are other than those usually or customarily rendered in connection with the rental of rooms or other space for occupancy only. The supplying of maid service, for example, constitutes such service; whereas the furnishing of heat and light, the cleaning of public entrances, exits, stairways and lobbies, the collection of trash, and so forth, are not considered as services rendered to the occupant. **************** The reason is that if certain conditions are met, short-term rentals are reported on Schedule C; otherwise, everything goes on Schedule E. (Schedule C  reporting might create issues in in for depreciation and proper handling of other expenses) ************************************* Short-term rentals can avoid the automatic passive classification (passive  -report on Schedule E)if they meet specific exceptions. The most common exception applies if the average stay for your guests is seven days or less. Another exception applies if the average stay is 30 days or less and you provide significant personal services to your guests. Once you meet one of these exceptions, the rental is no longer automatically considered a rental activity, and you must then show that you materially participated in the business. Material participation means your involvement in the rental operations must be regular, continuous, and substantial. The government provides seven different tests to prove this, and meeting just one of them can establish your participation for the year. (1) The individual participates in the activity for more than 500 hours during such year; (2) The individual's participation in the activity for the taxable year constitutes substantially all of the participation in such activity of all individuals (including individuals who are not owners of interests in the activity) for such year; (3) The individual participates in the activity for more than 100 hours during the taxable year, and such individual's participation in the activity for the taxable year is not less than the participation in the activity of any other individual (including individuals who are not owners of interests in the activity) for such year; (4) The activity is a significant participation activity (within the meaning of paragraph (c) of this section) for the taxable year, and the individual's aggregate participation in all significant participation activities during such year exceeds 500 hours; (5) The individual materially participated in the activity (determined without regard to this paragraph (a)(5)) for any five taxable years (whether or not consecutive) during the ten taxable years that immediately precede the taxable year; (6) The activity is a personal service activity (within the meaning of paragraph (d) of this section), and the individual materially participated in the activity for any three taxable years (whether or not consecutive) preceding the taxable year; or (7) Based on all of the facts and circumstances (taking into account the rules in paragraph (b) of this section), the individual participates in the activity on a regular, continuous, and substantial basis during such year.

@Hal_Al  - Thank you so much for your detailed reply. I really appreciate it.   The option of using the entire $8,132 for the LLC is very interesting, and I plan to explore that further.   I had a couple of follow‑up questions:   My child has more than $15,750 in earned income and will need to file a tax return. So, just in case, if I end up using only $3,132 on MY return for the LLC, will it be required to enter/report any of the 1099‑Q or 1098‑T information in the “Deductions & Credits → Education” section on my child’s tax return in TurboTax? My understand is the Education section can be totally skipped on my child's tax return in this case. Also, on my child’s tax return, I believe the box “Someone can claim me as a dependent” should be selected/checked. Is that correct?

@PatriciaV, when you say  "Enter the total of all lines Code AJ in the amount for this code.", what would it be in the example provided? Do we need to subtract deductions from income? Is it a negative number?   Schedule K-1, Box 20 AJ shows the following: Aggregate Business Activity Gross Income $7982 Aggregate Business Activity Total Deductions $19018 What value do I enter?

I tried to process an amended 1040SR. It seemed to work, but when I looked at the form itself it still is labeled as 1040SR.  There is no X on the form.  Is that the way it is or do I still need to wait for corrections or updates? Thanks

946This forum does not know what the business is or what the improvements were. Not all may qualify. Check the Section 179 part of PUB 946. If you have further questions, add them to this thread. PUB 946  The 179 deduction is limited to a business's profit before the deduction

I just noticed that the amended return I prepared on 14 March does not have a 1040X designation. The TurboTax cover sheet is written in such a way that it  leaves me to to believe a 1040x is attached. Only a 1040SR is attached.  What do I do?

@MaryK4   Is there any other way you know of to stop the distribution withholding amount from being included on the Est Tax Options worksheet other than an override (so as to avoid any risk of the return being blocked from e-filing....or how do we determine if this is even a risk to e-filing at all)?     I was unable to find anyplace in the interview process where it asks if you want current year withholding (or some other amount) as part of the projected estimated payments calculation.  Seems logical that question should be in the interview somewhere rather than TT assuming there will be a withholding again in the following year simply because the current year had one - not to mention assuming it will be the exact same amount !  

I have the same issue, where  my wife received the 1099-G paid medical leave for 6 weeks from her job that is not based in MA with < 25 employees in MA and box 1 is empty while 4 and 11 have values.   What are we supposed to do in this case, as Turbotax is not giving accepting the input.