TaxGuyBill
Level 15
07-10-2020
10:12 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Unfortunately, there is no clear-cut answer and it is always a facts-and-circumstances thing.
Find out how much activity your client does towards the rental. If the just collect rent once a month and pay the mortgage and taxes, no. If they do lots of work and planning and repairs and more, maybe.
As a general guideline, I reference the 250 hours for the Safe Harbor. How far away are they from it? If a total of 200 hours is put in, then it may be a good case to be called a business. If only 50 hours are put in, probably not.