Sorry, You Can’t Get There from Here: The Untenable Goal of Using Short-Term Rental Real Estate to Attain Real Estate Professional Status

36 Pages Posted: 21 Sep 2017

Date Written: May 8, 2014

Abstract

This Article addressed the surprisingly controversial issue of whether the law allows taxpayers to include hours worked relating to short-term rental real estate as hours associated with a real property trade or business. An example is whether operating a Bed and Breakfast is a business or a real estate venture. The classification matters because if a taxpayer has sufficient hours, the taxpayer may then qualify as a real estate professional under I.R.C. § 469(c)(7). Real estate professional status usually entities the taxpayer to currently deduct passive activity losses. The Article concluded that hours devoted to short-term rental real estate simply do not qualify for real estate professional status.

Keywords: Tax Policy, Tax Law, Real Estate Professional, Passive Activities, Short-Term Rental Real Estate, Taxation, Federal Taxation, U.S. Tax Court

Suggested Citation

Kofsky, Ausher M. B., Sorry, You Can’t Get There from Here: The Untenable Goal of Using Short-Term Rental Real Estate to Attain Real Estate Professional Status (May 8, 2014). Loyola Law Review, New Orleans, Vol. 60, p. 57, 2014, Available at SSRN: https://ssrn.com/abstract=2849580

Ausher M. B. Kofsky (Contact Author)

Western New England University ( email )

Springfield, MA 01119
United States

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