Material Participation for the STR loophole
I have 4 properties. I will be cost segregating the new one and am contemporaneously logging my time on my cell phone. It is cumbersome to hit it every time I do a 30 second message to a guest, but I'm doing it!
However, I just finished retroactively cost segging for 2025 (putting in the return late). I did not log contemporaneously. I had 3 properties and I am going to have to retrospectively document my hours. I have thousands of emails to guests (most not canned), trips on google maps to the properties. TONS or receipts to show that I went to the store to purchase items and do maintenance.
With three properties, it is clear I spent over 100 hours given that I was managing myself. When I did the cost seg, everyone said I would have no problem with this retrospective analysis. That the IRS would want the numbers but they know it takes more than 100 hrs so they won't waste their time. NOW people are telling me I might be in trouble in an audit. What is the best strategy?
Should I just wait and see...and if I get audited, then catalog all the email and trips etc. or should I do it now?
Best way to collect the info? Should I do an AI gemini search of my email?
Thank you for any advice.