Which of the following is a "rental" activity as opposed to a trade or business activity under the passive loss rules?

a small hotel with room rentals averaging 3 days

Rental of home and garden equipment by a retail dealer of those items

a motel which rents rooms for an average rental period of two weeks; the hotel provides cleaning, towels, and bathroom items daily and also provides breakfast in a separate room for its tenants

rental of a duplex by a small landlord; the apartments are rented on six month leases

Tessa Jones had the following items reported to her during the current year:

Ordinary loss passed through to her from RKL Partnership: -$5,000

Ordinary income passed through to her from NBV Partnership: $3,000

She does not materially participate in either of these partnerships.

Select which items below are correct statements of how these items will be reported or handled for tax purposes.

PICK ALL THAT APPLY!

These two items will net to -$2,000 from Schedule E flowing to Schedule 1 of her US 1040.

These two items will net to $0 from Schedule E flowing to Schedule 1 of her US 1040.

These two items will net to $3,000 from Schedule E flowing to Schedule 1 of her US 1040.

$2,000 of loss will be suspended and carried forward to next year's tax return to see if it may be deducted.