Owning Short-Term Rental - How to Qualify for Active Losses and Material Participation

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I understand that there are possibilities that a taxpayer can operate a short-term rental and classify as materially and actively participating, which if both true would allow the taxpayer to deduct losses in excess of the $25,000 limitation.

I am using ProConect to enter all information and ensure any relevant active losses are captured properly for each of the 3 equal partners in the 1065.

https://www.hurdlr.com/deductions/airbnb-income-tax

https://www.hrblock.com/tax-center/wp-content/uploads/2018/05/airbnb-taxes.pdf

Taxpayer has a 1065 formed in 2021 with 2 properties and 3 equal partners.

Both properties are under the AirBNB model, so tenants are not staying more than 7 days.

Only one of the properties was rented in 2021, the other was being renovated.

1 of the owners, who is married to another owner, actively cleans and maintains the property. The third owner is the parent of this owner, so essentially it is a husband, wife, and parent of wife as partners in the 1065.

The situation is completely nuanced, but can all of the partners claim as an active activity not subject to loss limitations on their 1040? Are the properties are not considered residential but instead commercial under this scenario? Does the activity get entered on the 8825, ultimately flowing to the K-1 for each equal partner?