I need a place to enter the avg rental period of my rental property. If <7 days, it gets reported as a business instead of rental, which means it's not passive income.

Forum|Forum|5 years ago
January 12, 2021
3 replies
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I don't see a place in TurboTax online to enter the average rental period, so it's not allowing me to offset other income with my rental loss.

TurboTax Premier Online

Best answer by Anonymous_

There is no such place to enter the average period of rental.

If you provide substantial services that are primarily for your tenant's convenience, then you would report your income and expenses on Schedule C rather than Schedule E.

See https://www.irs.gov/taxtopics/tc414

Anonymous_Answer

Employee

There is no such place to enter the average period of rental.

If you provide substantial services that are primarily for your tenant's convenience, then you would report your income and expenses on Schedule C rather than Schedule E.

See https://www.irs.gov/taxtopics/tc414

ericjfordAuthor

What if you don't provide substantial services?

Anonymous_

Employee

Report on Schedule E.

AmeliesUncle

When going through the introductory part of the rental section, it should ask you a question about what type of rental it is (Single Family, Multi Family, Vacation/Short-Term Term, etc.). I suspect that if you check the Vacation/Short-Term, it will handle things properly.

Critter-3

Only check vacation/short term if you or your family use the property during the year when it is not otherwise rented.

AmeliesUncle

Are you sure? I don't think that is right. The "short term" rental should adjust the passive rules, regardless if it is used for personal use or not.

Scorkett

Sorry to bring this back up again.

I wanted to ask what everyone decided on whether the < 7 days + material participation meant trade / business activity (non passive) or rental (passive)?

My understanding was that the <7 days + material participation meant it was a trade/ business and would qualify for losses to offset against other non passive income (IE W2 wages).

Anonymous_

Employee

@Scorkett wrote:
I wanted to ask what everyone decided on whether the < 7 days + material participation meant trade / business activity (non passive) or rental (passive)?

Review the posts above, particularly by @Mike9241 and @AmeliesUncle.

There really is no consensus on the issue.