[Francis]

The Becker explanation of the rules associated with the three types of property related to rental income is unclear.
1. Non residential
2. Residential less than 15 days
3. Residential more than 15 days

There is also a 10% rule that is discussed which is the inverse of the days rented (days the owner of the property used it for personal use)

If anyone has a good simple way to explain this topic it would be greatly appreciated. I already understand cthe passive activity loss rules (PAL) where the passive activity loss can only be used to offset passive activity income; and a net passive activity loss can only be carried forward indefinitely or when the asset is sold.

I also understand the mom and pop exception. If an individual has more than 10% interest in the asset and is actively involved a 25k loss can be used to offset ordinary income. Phase out from 100k to 150k of the 25k max.

My main question is what are the rules for the 3 types of property listed in the intro above.

Thanks!

FAR - 08/25/13 - 65, 01/09/15 - fingers crossed
REG 10/22/13 - 69
AUD
BEC