Cost Segregation Clarification

[Brandon Salimi]

I own a single-family home 50/50 with a partner that we've used for Airbnb since 2022. We've both spent 100+ hours through various means over the past year - are we able to run a cost segregation study that would benefit both of us from a tax write-off perspective or only the person who spent the most time? The preliminary report says we would be eligible for ~$390k in eligible deductions. I understand there are deduction limits, does this apply to this "STR loophole" as well? - Any insights/advice is greatly appreciated!

[Michael Plaks]

@Brandon Salimi

Each of you has to separately pass the material participation test, and you cannot both pass it on 100 hours. Flip a coin. :)