Short-term rental loophole checker
Check one property’s numbers against the tests behind the short-term rental strategy: average guest stay, material participation hours, and personal use.
Management and operations work on this property.
Your cleaner, co-host, or property manager.
Results for this property
Based on these numbers, losses from this property may be non-passive.
- Average stay: 4.0 nights (Meets)
Seven nights or fewer, so the property generally isn’t a “rental activity” under the passive loss rules.
- 500-hour test (Does not meet)
340 more hours needed.
- 100 hours and not less than anyone else (Meets)
You logged 160 hours, at least as many as anyone else (120).
- Personal use (Meets)
0 days is within the limit of 18 days (the greater of 14 days or 10% of rented nights).
What this checks, and what it doesn’t
- Average stay is total rented nights divided by the number of stays, under Treasury Regulation §1.469-1T(e)(3)(ii)(A).
- It checks two of the seven material participation tests. Others, such as “substantially all participation,” may also apply.
- It doesn’t check whether your hours are documented. Without a contemporaneous log, a qualifying number won’t hold up. See how to log participation hours.
General information, not tax advice. This strategy is closely examined; review it with a tax professional before relying on it.
Free to start
Keep the hours log the IRS asks for.
spentr Pro logs participation hours by property and shows your progress toward each test.