Vacation rental(air bnb, etc) considered passive for tax purpose?

[Jae Ham]

I am wondering the type of tax treatment for vacation rentals such air bnb, vrbo etc. Are rooming houses considered the same as vacation rentals? Assuming there considered passive? Please share your experience and advice on tax advice. Thanks all!

[Brandon Hall]

@Jae Ham @Gabriel Esparza

It depends on how long you are renting these out for. If the average rental period is less than 7 days, then the activity is considered to be generating earned income subject to SE taxes. The IRS assumes hotel operations.

If the average rental period is >7 but <30 days, and you are not providing substantial services (i.e. maid services) then the activity is passive. 

If the average rental period is >30 days, passive income.