Discussion:Rental of hangar with no profit motive

A client emailed & then called me this morning. He is contemplating the purchase of a hangar for $200,000. For five months of the year he parks his plane lakeside at his waterfront home and will rent out the hangar. The other seven months he will move his plane into the hangar. Wants to know the tax treatment. The situation is analogous to a vacation property, except that CodeSec 280A applies only to "dwelling units", which the hangar is not. CodeSec 183 (Activities not engaged in for profit) therefore comes into play. My question is, does the rental income get reported on Schedule E, along with the prorated expenses, subject to the limitation of the rental income, or does the income get reported on Form 1040, Line 21, with the corresponding expenses being deducted as Misc Itemized Deductions (which is to say they are lost, since they are unlikely to exceed 2% of AGI). I am inclined to believe the treatment should follow the hobby loss treatment of Line 21/Sch A since the transaction clearly is not being engaged for a profit. (He does state in his email that after 10 years of renting it out for 5 months, he intends to lease it out full-time, but I am not certain if that would hold any sway on the current treatment.)

Thanks for any insights.