short-term rentals

Brew1 · 2010-05-06T14:05:49+00:00

In the most recent Kiplinger Tax Letter, mention is made of thedisqualification of rental property from the $25,000 offset if theaverage rental lasts no longer than seven days. Losses can only beclaimd if they meet the material participation standard.The only IRS reference I can find (there is no mention in Pub 527) isin an audit guide to Passive Activity Loss, wherein with short-termrentals the taxpayer has a business, not a rental and the materialparticipation standard applies.Let's say a taxpayer is sole owner of a beach house that is rented for200 days with 40 customers. Does this belong on a Schedule C, and notSchedule E?

May 06, 2010 22 Replies

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Alan 16 years ago

R.R. 57-108 and 83-139 and a bunch of court cases that have upheld section 1402 regulations.

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removeps-groups 16 years ago

Where can I find these revenue rulings? I googled for "revenue ruling

57-108" but didn't manage to find the text of it.

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Alan 16 years ago

formatting link

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