Is my weekly rental really passive income?

What is the name of your state? Florida

Tax time is coming and as I was dragging out my paper work an idea came to me. I own a large beach house which I rent out by the week. It makes a very good paper (and real) loss. Problem is my wife and I have started to earn over $150k so we have to suspend the losses.

Or so we thought. Our home is considered Public Lodging in Florida, and we have to have it licensed as a Resort Dwelling under the Florida 509 Public Lodging Statute. Is there any reason we can’t just treat this like a hotel or motel on our taxes. A weekly rental to transient tourists sure operates a lot more like a hotel or motel than it does a rental property.

Any thoughts would be appreciated.

Thanks,

Alligatorob

It's still passive income. Only a real estate professional can take passive losses with income over $150,000. Thus, a company that makes its revenues renting vacation properties can take unlimited losses, but a person who owns a single vacation property & hire a management company to rent it cannot.

Thanks for the reply, but I did some research and think I found a loophole. I took the following from IRS Publication 925, Passive Activity and At-Risk Rules, pages 2 and 3:

Exceptions. Your activity is not a rental activity if any of the following apply.

1) The average period of customer use of the
property is 7 days or less. .............and

2) The average period of customer use of the property, as figured in (1) above, is 30 days or less and you provide significant personal services with the rentals.

There is more detail in the doccument. My beach house is rented out in 7 day blocks and we do provide personal sevices, mostly cleaning. I manage this myself, I don't have a rental management company.

Am I missing something here? Do I have to call this a passive activity?

If it's not a rental activity, the revenue & expenses go on Schedule C.