STR: Tax designation?

[Rachel Kokosenski]

I've heard conflicting things about whether or not STR rentals are considered "passive" investing. I listened to a real estate CPA podcast recently that said if you average 7 nights or less per rental contract for an STR, plus participate in the renovating, stocking, managing renters, and maintaining of the property then you are actually in an "active" business and can bypass having to qualify as a "real estate professional" and track your hours, activities. Anyone have solid facts on this? (I certainly do not want to get audited by the IRS!) Thanks.

[John Underwood]

It is a simple schedule E business deduction.