sjrcpa
Level 15
04-12-2021
03:02 PM
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Not much sounds right.
If it is a motel business it would be Line 1 income and subject to SE tax and maybe not passive.
Line 2 is for rental real estate. By definition, rental real estate is passive. It is not subject to SE tax. The only exception to it being passive is if your client is a Real Estate Professional.
Ex-AllStar