LTR lease as an STR

[Alex U.]

Could a long term lease could be written as a series of short term leases (less than 30 days), and thus qualify income from the rental as "Active" and thus allow the tax filer to file as a "real estate professional"?

[Michael Plaks]

Quote from @Alex U.:

Could a long term lease could be written as a series of short term leases (less than 30 days), and thus qualify income from the rental as "Active" and thus allow the tax filer to file as a "real estate professional"?

No.

And let's not bring this "identify as..." into real estate investing. Enough confusion as is. :)

[Benjamin Weinhart]

Quote from @Alex U.:

Could a long term lease could be written as a series of short term leases (less than 30 days), and thus qualify income from the rental as "Active" and thus allow the tax filer to file as a "real estate professional"?

 While this does technically satisfy the requirements on paper, it would never hold up under audit and would be considered evasion/fraud WHEN discovered (not if).

[Zachary Jensen]

Quote from @Alex U.:

Could a long term lease could be written as a series of short term leases (less than 30 days), and thus qualify income from the rental as "Active" and thus allow the tax filer to file as a "real estate professional"?

Its alot of hoops to jump through that would sadly fall apart under audit. A better strategy and use of time would be to actually do a STR :). Best of luck in your real estate endeavors!

[Michael Plaks]

I'm not sure why my colleagues believe that "this does technically satisfy the requirements on paper" and discuss failing a potential audit. 

It does run into the plain language of the Treasury Regulations 1.469-1 which contains this definition:

Period of customer use. Each period during which a customer has a continuous or recurring right to use an item of property held in connection with the activity (without regard to whether the customer uses the property for the entire period or whether the right to use the property is pursuant to a single agreement or to renewals thereof) is treated...

[Michael Plaks]

And I think I figured out where this creativity comes from...

"Nah, I'm not in a relationship. It's just a one-night stand. With a day-to-day renewal. For the last two years."