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URL:  http://boards.fool.com/rental-real-estate-is-by-definition-a-passive-30777081.aspx

Subject:  Re: Beach Rental Property Date:  7/14/2013  7:15 PM
Author:  inparadise Number:  118865 of 121572

Rental real estate is, by definition, a passive activity.

Not so much for vacation rentals, so if your average rental is less than 7 days, you may be needing to file a schedule c instead of e. No documentation for this at my fingertips, but a vacation rental owner board I frequent has been reporting increasing IRS audits that determine they need to file schedule C, with the +/- 7 day line in the sand being one of the determining factors. There are others.

You may very well be able to deduct the loss against ordinary income. Talk with a tax pro who is familiar with this type of investment. This book is also a good start, but he insists you can file schedule E: http://www.amazon.com/Every-Landlords-Tax-Deduction-Guide/dp... Also check out the Yahoo board: http://groups.yahoo.com/group/vacation_rentals/

IP
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