From my understanding, long-term rental income is not considered "earned income" but what about the income from a STR or MTR if I self-manage the rental?

@Robert Johnson good question • Earned income generally requires withholding and paying federal, state, and local income tax and FICA. • Rental income is usually taxed as passive income, similar to stock dividends or real estate investment trust (REIT) distributions *This post does not create a CPA-client relationship. The information contained in this post is not to be relied upon. Readers are advised to seek professional advice.

Hey @Robert Johnson, like @John Underwood, my CPA uses the Schedule E as well. Get a CPA if you don't have one. Make sure they are knowledgeable about real estate. Mine is an investor himself and knows just about everything. Saved us a ton in taxes. Worth every penny. The IRS is always looking for those that are skirting the laws and real estate folks like us are prime targets. Mostly due to ignorance, but that is no excuse. Having a CPA do everything keeps you on the straight and narrow, plus they represent you if you are audited. Significant services is something that gets discussed here on and off. People want to make their STR stand out so they want to provide daily cleanings or maybe a chef to make some meals. Provide a car service. Those are all services that will put you in a different tax situation that negates a lot of deductions. Again, get a good CPA to help you setup everything.

My CPA puts mine on schedule E because I do not provide "substantial services" That help?

There is a workaround for those that want 'earned income' is to set up a management company.However, it is normally more advantages not to have advantageous earned income as others have mentioned, as it may result in self-employment taxes.

It is taxed the same as ordinary income, regardless of whether you have your own management company.

@Robert Johnson - What type of services do you provide? Is it on Sch E or C?

Is the income from a STR considered "earned income" for tax purposes?Is the income from a STR considered "earned income" for tax purposes?

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Is the income from a STR considered "earned income" for tax purposes?

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