I have a somewhat confusing issue I hope someone can help.


I personally rehabilitated a historic building (now used commercially) that generated rehab credits in 2010, and is held under an LLC.
I rent part of the building for special event hosting (a small side-business in which I do all the work), all through the LLC.
I have a few offices for rent, but no takers as of yet. I am not a real estate professional, and this is my only property.

I also own a single member S-Crop and I pay rent to the LLC for office space in two rooms. I work here every day. I still show a loss, so its passive under the self-rental rules.
I'ts been recommended that I rent substantially more of the building in order to show a non-passive income (self-rental), which would allow unlimited use of the tax credits.

I've seen IRS text stating that "credits are not limited on active projects" (i.e. "John is an architect" example in circumstances where RTC is not limited).
But I've read the Siddell v Commissioner case and it seems to contradict this, although that case is fairly complex but frequently cited.