Test $-$ Intermediate Rental Real Estate $(2025)$

Special Rental Situations

Question $15$ of $15.$

Jen rents out a guest cottage on her property through an online platform. She cleans the cottage between renters but does not provide other services. The average stay is three days, and in $2024,$ she rented the cottage for $175$ days. She received a Form $1099-$K from the online platform for her rental receipts. How should this income be reported on her tax return?

The income is not taxable or reportable.

Jen should request an Earnings Summary to properly divide the income between nontaxable and taxable portions.

The income should be reported on Schedule C$.$

The income should be reported as passive rental income on a Schedule E$.$

Mark for follow up

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