Generally Yes. A rental activity is a passive activity even if you materially participated in that activity, unless you materially participated as a real estate professional. An activity is a rental activity if tangible property (real or personal) is used by customers or held for use by customers and the gross income from the activity represents amounts paid mainly for the use of the property. It does not matter whether the use is under a lease, a service contract, or some other arrangement.
WCG Inc. | 2393 Flying Horse Club Drive, Colorado Springs, CO 80921 (formerly Watson CPA Group PLLC) | 719-387-9800 tel, 855-345-9700 fax, 719-345-2100 txt | WCG Inc. (License FRM.5000080) is supervised by Tina Denise Watson, CPA (License CPA.0022434)
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