Is Form 8825 correct for short term rental income on a property?

Question

I know STR income is treated as active by IRS (like a hotel) and I have S Corp. My accountant used form 8825 (rental real estate income for S Corp). Is this correct? I would have thought it should appear in a different place on the tax return. If this is not correct, could someone tell me where on tax return should the income appear?

Thanks!

Julie Groth · Answer

What are the parameters that make a difference? Does it matter whether I manage the property myself or if I hire property manager? What if you have manager for part of the year of not?

It is rented, generally, for 7 days less at a time. The income/expenses go thru a S-corp. I now manage it but in 2019, it was managed by others or a hybrid type management with me doing some things/they do some things.

I didn't realized that it mattered about the manager, I thought it was treated as ordinary income regardless. If you put it on form 8825, then that is NOT ordinary income, right?

Thanks for your response!

Ashish Acharya · Answer

It usually is correct place. But we don’t know how you run yourself STR, so can’t confirm for certain.

Most of the STR will go there.

Is Form 8825 correct for short term rental income on a property?

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