TaxGuyBill
Level 15

@Basta  wrote:

 

and no, he provides no services to the renters.  he's an attny.


 

No services means it is a rental of real estate.

Rental of real estate is automatically passive unless (1) they qualify as a Real Estate Professional AND (2) they Materially Participate in that rental activity.

 

So unless your client qualifies as a Real Estate Professional (based on what you said, he does not), it is passive.  Being "Active" or even "Materially Participating" does not change that.