Question

Maine Passive Income - Rentals when I am a real estate agent

Forum|Forum|4 years ago
March 31, 2022
1 reply
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Hi - I am a Maine vacation rental owner who is a non-resident of Maine.

I am a real estate agent in another state so am ACTIVELY involved with real estate from a federal perspective.

In TurboTax the only option I see for Income Allocation in Maine is "Passive Income (ie Rentals)."

QUESTIONS:

1) Should I be considered an active participant in the rental as a real estate agent even if my license isn’t in Maine?

2) If so, should I report the rental income under Other Income instead of Passive?

3) Does Maine tax Passive Income differently from Other Income?

Thanks!

T

ThomasM125

Yes, you are an active participant in Maine due to your qualifications as such elsewhere. If you qualify as a dealer in real estate, you would report the rental income as self-employment income on a schedule C, not as other income. Otherwise, it would be reported as rental income on schedule E, and as such is passive income.

Maine treats passive income the same as it is treated on your federal tax return.

Here's a link to help you determine if you qualify as a real estate professional:

Real estate professional

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