qbteachmt
Level 15

"However, if you look at this chart, you can see that the length of a tenant does indeed dictate the categorization."

Your title indicated you are dealing with Real Estate Business.

Of course, if you keep using AirBnB resources, everything will start with the assumption of short-term. You wanted to enter it as "short-term in nature, thus they do not need to classify it as a passive activity when incurring losses." But there is no indicator for "short term" other than Days Rented. You keep pointing to what will make this nonrental, on your way to determine passive or nonpassive.

"A rental activity is a passive activity even if you materially participated in that activity, unless you materially participated as a real estate professional." From: https://www.irs.gov/pub/irs-pdf/p925.pdf

You seem to be trying to use something along the lines of: "Under the Internal Revenue Code, the income generated by leasing your property is not considered a rental activity for a taxable year if the average period of customer use for such a property is 7 days or less." From: https://www.snydercohn.com/2021/12/is-your-short-term-rental-activity-really-a-rental-activity/

You already have this as a Business.

If you go to a surgeon, your medical issue is evaluated in the perspective of surgery. If you go to any short-term or AirBnB reference, your tax issue is evaluated in the perspective of short term rentals.

However, if you want to understand Passive or Nonpassive, especially from the perspective of Real Estate Professional and Form 1065, you probably should look at the IRS resources, as well as reference materials for that condition. Go to that IRS Pub, go the section for "Rental Activities" and read along. Follow the links to read about Exceptions, Activities that Aren't Passive Activities, and the part about Real Estate Professional. There is no entering that some activity is Short Term. You determine the type of activity, and enter it accordingly. In your case, you seem to be working on 1065, and a Schedule E. Notice those AirBnB resources don't even mention 1065.

Here is the ProConnect article:

https://proconnect.intuit.com/support/en-us/help-article/form-1099-misc/common-questions-entering-re...

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