With respect to residential rental property
◦ 80% or more of the gross rental income from the building or structure must be rental income from dwelling units in order for it to be classified as residential rental property.
◦ hotels are not included in this category if less than half of the units are used on a transient basis.
◦ 80% or more of the net rental income from the building or structure must be rental income from dwelling units in order for it to be classified as residential rental property.
◦ gain is not subject to the depreciation recapture provisions if the property is held more than one year.