All Forum Posts by: Stan Pace

New to this site: Still waiting for advice or answers: Thanks for any help.

I have 9 vacation properties I rent out. 3 do not meet the long term requirement of above 7 day average rental. An audtor is stating I can claim them toward the 750 hours since I aggregated as one. However, is saying the time spent on them counts toward w2 hours instead of Realestate Professional hours in calculating the > than 50% rule.
This means their time is being counted against the hours added for >50%. That seems incorrect to me, since they are part of a realestate activity of managing or operating realestate?

If anyone has clarification, would be appreciated.

It appears the formula for calculating the > than 50% rule, subtracts the hours on short term rentals (or rather adds them to the w2 hours) in the calculation. It just seems odd that they would count against the hours allowed toward the hours in calculating the hours to see if real estate professional hours are greater than w2 hours.

QUESTION: I have 9 rental vacation properties that I rent online. 3 do not qualify as long term, because they do not meet the average 7 day or above rule. However I manage, market and rent them in the same format as the other six properties (they just didn't meet the guidelines).  For tax purposes (to meet Realestate Professional) I aggregate them as one, to meet the standards.

My question is, since three happen to not make the 7 day or above rule, do I not get to count the time managing, renting, overseeing, working on them as hours towards the 50% above time required above my W2 job?

It seems strange, since I don't separate the business of operating them into different units, I would have to try to calculate what amount of time went toward them?

Answers would be appreciated.

Thanks,