WalterDuck
Level 1
04-08-2023
05:24 PM
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Client sold a short-term Airbnb rental at a gain. Question: Is that subject to NIIT? Some research indicates they need active participation (in addition to being short-term) to avoid being subject to NIIT.
And some research indicates that simply by being short-term it is not passive and not subject to NIIT.
The property was reported on Schedule E in 2021 and sold Jan 2022.
Average 2021 rental period was less than 7 days but the property is out of state and the taxpayer was not involved in management. Cleaning and management was provided by a local realtor.
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Camp1040
Level 10
04-08-2023
06:43 PM
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You have made a great case for passive income, all the info points to be subject to NIIT.
WalterDuck
Level 1
04-10-2023
08:09 PM
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Thanks!