I read that if I lived there more than 14 days or greater than 10% of the rented days, it is considered to be renting a residence/home/dwelling and that means it becomes nonpassive income.
Pub 527: Renting a dwelling unit
that is considered a home isn’t a passive activity. Instead, if your rental expenses are more
than your rental income, some or all of the excess expenses can’t be used to offset income
from other sources. The excess expenses that
can’t be used to offset income from other sources are carried forward to the next year and
treated as rental expenses for the same property. Any expenses carried forward to the next
year will be subject to any limits that apply for
that year. This limitation will apply to expenses
carried forward to another year even if you don’t
use the property as your home for that subsequent year.
To figure your deductible rental expenses
for this year and any carryover to next year, use
Worksheet 5-1.
This still doesn't say whether it is Schedule E. I appreciate your responses. Please tell me your thoughts?
