alligatorob
Member
Is rental income always passive income?
I own a beach house in Florida that I rent out by the week. I advertise on the internet, I take all bookings, handle all the money, collect and pay sales tax, and do all of the maintaince and cleanup between guests or hire people to do it. It is hard to see how this is much different than actively running a business. In Florida there is a special business licensce for Beach Houses and we are treated differently from longer term rentals (read taxed more highly and regulated more stringently).
The reason I ask is that I show a loss for the rental business, but this year due to other income will have to suspend the loss if this is passive income
Any insight would be appreciated.
I own a beach house in Florida that I rent out by the week. I advertise on the internet, I take all bookings, handle all the money, collect and pay sales tax, and do all of the maintaince and cleanup between guests or hire people to do it. It is hard to see how this is much different than actively running a business. In Florida there is a special business licensce for Beach Houses and we are treated differently from longer term rentals (read taxed more highly and regulated more stringently).
The reason I ask is that I show a loss for the rental business, but this year due to other income will have to suspend the loss if this is passive income
Any insight would be appreciated.