Real estate professional while using management company for short term?

Question

Can you still be considered a real estate professional while using a management company for AirBnB? I want to use the losses to offset my W2 income. Thanks

Pete Appezzato · Answer

It's def a CPA question.....but if you are looking to start this late in the year, i'd say the answer is almost definitely going to be NO.

Melissa Nash · Answer

My CPA sent me step by step the exact requirements to qualify for the STR loophole and I put it into a PDF. Let me know if you want it, message me or contact me via email- happy to send it.

Bruce Lynn · Answer

While everyone says no, using 3rd party management is fairly common.   Now on the flip side of that I think REPS is pretty difficult to qualify for.  If you have one unit, I don't think that would probably qualify you.   There are several ways you can qualify, but just to give you a couple as I understand it you need to spend about 1/2 your time managing your real estate investments or 750hours/year.  If you have one with 3rd party management I would think that is tough to qualify.   Probably no one does this to spend 15 hours a week on it.

Brooklyn McCarty · Answer

Def a question for your cpa. Short answer would be no I think

Ryan Moyer · Answer

You're going to want to consult a cpa for a final answer, but my non-cpa and unofficial understanding is that this would be very difficult. Most people that want to make their losses active sepf manage for the year they want to do that.

Michael Baum · Answer

I think the others hit the nail on the head @Jonathan Gruber. You can't really use a management company and expect the IRS to accept you are working it as a real estate professional. Consult the CPA on this one.

Sarah Kensinger · Answer

I don't totally know the answer either, but from the bits I've heard this would be pretty hard to do. I would definitely consult a real estate CPA.

Real estate professional while using management company for short term?

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