Steve has converted his garage into a separate living space and listed the property for short-term rental on an online platform. Steve spends an average of 15 hours each week performing activities related to the rental property. Which activity is considered a substantial service.

B). Changing sheets and towels between rentals.

Multiple-choice

A). Administrative activities, including paying bills and advertising the rental.

B). Changing sheets and towels between rentals.

C). Re paring carpet damaged by quests

D). Transporting quests to and from the airport and sightseeing trips.

Explanation:

According to IRS regulations, a person is said to have performed substantial services if they dedicate at least 45 hours per month to the business. Steve works an average of 15 hours of performing activities. In a month, he works for an average of 60 hours in the rental property.

The IRS defines substantial services to be activities like regular cleaning, maid services, and changing linens. For Steve, substantial service will be option B: Changing sheets and towels between rentals.

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