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Author: inparadise Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 120812  
Subject: Re: Taxes: Schedule C or E Date: 8/9/2012 6:58 AM
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Another post in the thread: I am in the midst of an audit for 2009 & 2010.
My average rental period is 7 night +
meaning I rented 2929 nights in 359 reservations or 8.15 nights/res

I have not received the IRS audit report yet, but per my accountant::
My average rental was greater than 7 nights...
So I am able to continue using Schedule E.


However, the reference to "overnight rental cabin" (emphasis added) suggests that this rental is one where the owner provides "substantial services that are primarily for [the] tenant's convenience" as described in Pub. 527.

Typically these types of places rent for a minimum of 2-3 days, or even a week. About the only "substantial services" that are included are cleaning, which gets contracted out to a third party typically, and even often billed separately. Many places offer linens, many do not. Yes, utilities are included, but IIRC, that does not constitute a service.

It's been an interesting thread to follow, in that some file schedule c and some e, though the Nolo Press book on taxes for the landlord seemed pretty confident that a vacation rental would be declared on schedule e. Indeed, on a previous thread here, which I can not find, the board was adamant that schedule e should be used, not c.

Seems to be a lot of uncertainty. If the guideline is an average rental of 7 days or more, that may dictate one week minimum rentals if I ever put our place on the vacation rental market.

IP
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