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Updated about 1 year ago on . Most recent reply

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John Fong
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claim rental income as active

John Fong
Posted

I know i can claim my short term rental income as active income as long as 1. avg rental is < 7 days 2. spent more than 100 hours managing it.

If I have other long / mid-term rentals, does the active business status carry over to other property's rental income?

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Sean O'Keefe
  • CPA | Accepting new clients | 50 States
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Sean O'Keefe
  • CPA | Accepting new clients | 50 States
Replied

@John Fong if you meet the IRS requirements to qualify as a short-term rental and material participant (7 tests, you must meet at least 1) you may qualify to offset non-passive income (W-2, 1099, etc) with short-term rental losses. 

Keep in mind, that only certain hours count toward material participation and you will want to track these hours. 

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This post does not create a CPA-client relationship. The information contained in this post is not to be relied upon. Readers are advised to seek professional advice.

  • Sean O'Keefe
  • [email protected]
  • txt 6282410888
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