Short Term Rental Grouping Election

Mark and Mat,

Thank you for your show and for your mission to help small business owners live out their American Dreams.

My question is:

Is the Section 469-4 Grouping Election allowed for multiple short term rentals to be considered one activity?

After reading the code, it looks like short term rentals - properties with average rental of seven days or less - do not qualify for grouping under rental activities.

To overcome this hurdle, it looks like short term rentals must qualify as a trade or business to be grouped together. There aren’t too many places where trade or business is unequivocally defined.

Going back to the question, do short term rentals qualify as a trade or business to be eligible for grouping?

Thank you again!

Answered on today’s show March 12. Thank you! Show should be up soon. Mark and Mat