Short-Term Rental (Avg Stay < 7 Days) Showing as Passive in TurboTax Online – How to Mark Non-Passive?

[CMCLLC]

My STR averages 2.1 nights per booking (10 stays, 21 nights total). I materially participated. TurboTax Online is treating it as passive and suspending the loss. I was never asked about average stay length. How do I properly classify this as non-passive? Is this only possible in Desktop?

[M-MTax]

@AmeliesUncle ?? [he has dealt with this scenario previously]

I believe that you need to mark a box in Forms Mode which is not available in the online versions.

[AmeliesUncle]

As M-MTax said, the last I saw, TurboTax is NOT set up for that.

The only way around it is to use the desktop/downloaded version and go to the "Forms" mode to manually check the box on the "Schedule E Wks" for "Other Passive Exceptions".

[user17723906719]

Will manually overriding to mark as “other passive exemptions”, create audit risk? 

[M-MTax]

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@user17723906719 wrote:

Will manually overriding to mark as “other passive exemptions”, create audit risk? 

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Who knows? It's possible, though, particularly if you have a large loss.