TaxGuyBill
Level 15
08-24-2022
12:48 PM
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@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.