"Active Participation" Question

mmpotash · #1 (**permalink**) 03-19-2014, 10:37 AM

My vacation condo, which is used as an investment, (not personally more than 14 days), is managed by a company which sets rent amounts, finds short term renters and cleans it. I own it 100%. The HOA fees cover utilities.
I do the maintenance and make all decisions in regard to upgrades, etc. Do I qualify as an "Active Participant"?

Wnhough · #2 (**permalink**) 03-20-2014, 10:30 AM

Quote:

Originally Posted by mmpotash

My vacation condo, which is used as an investment, (not personally more than 14 days), is managed by a company which sets rent amounts, finds short term renters and cleans it. I own it 100%. The HOA fees cover utilities.
I do the maintenance and make all decisions in regard to upgrades, etc. Do I qualify as an "Active Participant"?

You actively participate in a rental real estate activity if you and your spouse owned at least 10% of the rental property and you made management decisions or arranged for others to provide services ,such as repairs, in a significant and bona fide sense. Management decisions that may count as active participation include approving new tenants, deciding on rental terms, approving expenditures, and other similar decisions.Based on what you stated in your message you are an active participant in the rental.