This is a very helpful thread, as I am in this same, what feels like too-new-for-the-IRS-to-understand boat of AirBnB owners who self-manage and the guidance is quite confusing.
I think I basically agree and understand that I should report my income on Schedule E, even though I'm hoping the loss generated is non-passive. In 2021 it should be non-passive because I was a real estate professional, but once I had a full-time W2 job in 2022 I need to qualify for non-passive in a different way to be safe.
My problem is that my average rental period in 2022, to be precise, was 7.85 days. I know this is splitting hairs, but could 7.85 days be in the category of a 7-day average? They could have said "not more than 8 days" if they meant to include 7.85 days, but on the flip side you could say that 7.85 days is not 8 days, therefore it must be in the category of 7 days or less. I wouldn't normally try to make this argument except that we're talking about an average. No one is renting for partial days/nights, so do they really mean to disqualify people with an average of 7.01 days? Thoughts?
