Not-for-Profit Activity

[Emre Tapucu]

I currently own a profitable property in Cypress, Tx (~20K net) and live in San Jose, California in my own home. My wife and I have been interested in property in the Lake Tahoe, CA area as a mixed use investment (i.e. Family Vacation Home / AirBnb Rental  during non-use times). Unfortunately, when I do the math the Lake Tahoe property will be a money sink (~15-18 K in expenses maybe about 3 to 4 K revenue - With about 1 month personal use per year).

So, my question is if I claim the Tahoe property as an investment property 11/12 months, and run it at a loss, but my Texas property more than makes up for any losses (i.e. my real estate portfolio is cash flow positive), will the IRS look at my properties individually and deem the Tahoe property as a "Not-for_Profit Activity" and disallow any deductions from that property?