There are a few ways to establish material participation:1.500-hour rule – You must participate in the activity for at least 500 hours during the year.2.100-hour rule – You must participate for at least 100 hours, and no other individual (including property managers) can participate more than you.3.Significant participation activity – You can aggregate all your participation in rental activities to reach 500 hours.Additionally, to qualify for non-passive treatment, you need to own at least 10% or more of the property—which sounds like it won’t be an issue for you.A key consideration is that hiring a property manager could impact your ability to qualify if they are performing more work than you.

But since you have already taken bonus depreciation while it was an LTR, this may not even be a concern for you.There're other potential complications such as a different depreciation schedule, treatment of previously suspended losses, and so on.

There was no remorse from them for their actions and despite years of treatment I believe 100% that if left to their own devices they would reoffend.

It’s crucial to set up your rentals correctly from the start for proper depreciation treatment, as mistakes can be costly to fix later.

No one will be able to confirm the treatment or what's best or accurate. 

Since flip properties are treated as inventory rather than investments, they don’t qualify for capital gains treatment.

While holding a property for over a year generally qualifies for capital gains treatment, intent at the time of purchase is crucial.

I purchased one fourplex in CA last year with one partner. Meanwhile, I created one LLC and business bank account to pay property tax, mortgage and day-to-day operating cost. Per lender's requirement, the title is hel...

As someone in the industry with an established infrastructure, I hate to see anyone suffering this type of treatment.

I've always been told to buy & hold in the partnership, but do flips in an S-corp for cap gains treatment.