Lisa,

The reason I mentioned that the average days rented was less than 7 days is to state that it qualifies as nonpassive.

That doesn't require the VRBO to be reported on Sch. C and, therefore, be subject to SE tax.

Only if substantial services are provided will the rental property be reported on Sch. C and be subject to the SE tax.

If my understanding isn't correct then please give me a cite that says that renting for less than an average of 7 days and not providing substantial services, requires the rental property to be reported on Sch. C and is subject to the SE tax.

Thank you.