Message Font: Serif | Sans-Serif
No. of Recommendations: 0
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: Also check out the Yahoo board:

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.