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Ok, so how would one categorize it if you buy a house, fix it up, and rent it out for weekends or maybe a week at a time? I assumed that would be a schedule E vacation rental. Then there is the question of if it is active or passive. From what I've read, if you spend more than 750 hours per year AND 50% or more of your work-related hours on this vacation rental business, then it is active and thus your losses are not limited as in a passive business.

Either that or is it a schedule C self-employment business, where again your losses aren't limited. But the downside here is that when you have gains you have to pay SE tax, whereas with Sch E you don't.

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