Real Estate Professional (REP) Status guidance

[Clifford Pereira]

Hi, my wife and I started an Airbnb in Sacramento, CA, this year and are new to real estate investing. According to our understanding:

1) California does not recognize REP status, but we could claim it on our federal taxes, is this correct ?

2) The minimum hours required are 750 hrs, but if running a short term rental, 100 hrs is supposed to be adequate, is that still true ?

3) Is there an official IRS form where these hours are documented, or would an excel file suffice ?

Any guidance would be most appreciated, so we can be better prepared for our tax returns next year.

Thanks so much for your time !

Cliff n Marie

[Noah Laker]

Ben nailed it. I'm a local broker and investor, and manage 100+ Airbnb properties for clients. Many of my clients are high W2 earners who are taking advantage of the "STR loophole." Very powerful strategy. Hope it goes well! Make sure you're working with a highly competent CPA!