**The information below has not been verified for the 2020 tax year as the IRS Pub. 925 has not yet been released by the IRS.**
A vacation home property won’t be considered passive and won’t be entered on Form 8582 Passive Activity Loss Limitations.
Per IRS Publication 925 Passive Activity and At-Risk Rules, on page 5, vacation home properties are one of the exceptions to the passive activity rules:
Activities That Aren't Passive Activities
3. The rental of a dwelling unit that you also used for personal purposes during the year for more than the greater of 14 days or 10% of the number of days during the year that the home was rented at a fair rental.
CAUTION! You shouldn’t enter income and losses from these activities on Form 8582. Instead, enter them on the forms or schedules you would normally use.
Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.