STR and Sepp/IRA Contributions

[Trish Mccoy]

I know the IRS doesn't allow passive income - typically long term rentals as qualifying income for a SEPP contribution. Does anyone know if you can use the revenue from STR's for a contribution?

[Michael Baum]

Quote from @Trish Mccoy:

@Michael Baum Thank you very much. Yes.. I did set this up for my business as a Realtor however, all of my STR properties I file as a schedule E. Last year my accountant told me I couldn't use rental income towards my Sepp contribution - as IRS considers it passive income. But my STR biz is a full time job for me :)

Hmm. I had not heard that. I also can't find any reference to that on the IRS site. You might want to get a second opinion on it. I am no expert. Maybe get some info from a tax attorney?