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September 13
Lantern Bay's two cottages average a six-night stay, which puts them under the short-term rental rules rather than the ordinary passive rental ones.
That matters: with material participation the losses can offset active income instead of being suspended. It is one of the few genuinely valuable positions left in residential property, and it turns entirely on hours.
September 14
What counts, and what evidence do they need?
Cleaning, guest communication, maintenance, listing management — their own hours, not a manager's. One of seven tests has to be met and the usual one is 100 hours with nobody doing more.
Evidence is a contemporaneous log. Not a reconstruction in April: a calendar kept as they go. Note attached, and I would send it to them verbatim.