RV rental

I was thinking of the SE tax question the same way I would for any airbnb, even though it's not real property.

What authoritative guidance are you relying on for that position? That is: short-term rentals of RVs, campers, trailers, etc are exempt from SE tax unless substantial, hotel-like services are provided.

IRC Sec 1402 and the related reg are pretty clear that only rental real estate is generally exempt from SE tax. I don't think RVs/campers/trailers qualify as real property. I don't think Sec 280A is relevant in making an SE tax determination. What am I missing?

From my perspective, I think you have a Sch C / Sch SE if a trade or business, Sch 1 if a mere investment. Never a Sch E.

Right, not Sch E because it's not real property. Since it's personal property, it's either Other Income or Sch C. It's Sch C if it rises to the level of trade or business, a question which I am trying to evaluate in the same way that I would if it were a real property airbnb. (And I assumed that if it rises to the level of trade or business and is reported on Sch C, it would be subject to SE tax.) Are you saying that it's not appropriate to consider the type and degree of services provided in making that determination because it's not real property? Each client engages in this activity to make a profit (but investors also engage in an activity to make a profit). I would say only the glamping client is involved with continuity and regularity, with material participation.

Client cashes out money in their IRA, buys an RV. It's a combined business use/personal use activity. Last year they rented the RV 29 days, had 14 days of personal use. My initial plan is to put it on Schedule C. Looking at CCH, for depreciation purposes, it looks to be a light general purpose truck if less than 13,000 pounds, or heavy general purpose if over. It's certainly over 6,000 pounds as to not be subject to passenger auto caps.

For the purposes of 280A, it's under 15 days this year, but personal use will likely be higher in future years. If they utilize bonus depreciation in 2020, it obviously helps to offset a good chunk of the IRA distribution used to purchase it. Does anyone see a reason they would be unable to utilize bonus depreciation in this scenario?

I'm a little worried this could flag and create future issues, especially given the personal use is right under the limit for Sect 280A purposes.

I'm a little worried this could flag and create future issues, especially given the personal use is right under the limit for Sect 280A purposes.. What's the exact concern? Is it recapture on change to personal use? Do you agree that sec 280A is not even applicable for 2020, because the RV does not meet the definition of residence in 280A(d)(1)?

I'm a little worried this could flag and create future issues, especially given the personal use is right under the limit for Sect 280A purposes.. What's the exact concern? Is it recapture on change to personal use? Do you agree that sec 280A is not even applicable for 2020, because the RV does not meet the definition of residence in 280A(d)(1)?

My primary concern is more related to the taxpayer not keeping accurate enough records and being within one day of personal use to having 280A apply. My other concern was material participation and avoiding passive activity losses. I'm assuming we should be okay given there isn't a management company and the owner provided "substantially all the participation in the activity" even though it was well under 100 hours due to buying it near the end of the season.