HowardS wrote:The PAL definition of rental activity is being misused to classify a 7 day or less rental as a business to be put on schedule C, ignoring the all important "for purposes of this section".
Agree.
Yellowdog wrote:If not providing services, why would they "change" the sheets and towels? Shouldn't the tenant just take his own sheets and towels with him when he leaves? If the landlord is providing the sheets and towels, is he now providing amenities which might elevate the endeavor to a Business (Schedule C.)?
Yellowdog, isn't the provision of clean sheets and towels not the provision of services but of property?
There shall be excluded rentals from real estate and from personal property leased with the real estate IRC Sec 1402(a)(1). It's not dissimiliar from a furnished rental, as Howard noted.
A maid coming in regularly to change the towels and launder items would be provision of a service.