IRS Publications are fine for basic tax questions.

There are investors who have millions in property… and still overpay the IRS by five or six figures.

If she lives in the home as her primary residence while also being on title, the IRS could disallow rental losses due to personal use.A valid lease at market rate and her removal from title would strengthen her position to claim active participation and depreciation on the rental portion.Title Structuring and LLC Transfer:Removing your daughter (and spouse) from title and transferring to a single-member LLC (SMLLC) in your husband's name aligns with IRS guidance and simplifies the REP claim.Transferring to an LLC may trigger a transfer tax depending on your state/county, but could be worthwhile for legal protection and tax clarity.If structured properly, there's no federal income tax when transferring to a disregarded SMLLC (for a single owner).Future Gifting & Tax Planning:Gifting the home later to your daughter will not get a step-up in basis.

Tax Strategies for High-Income Earners: How to Lower Your Effective Tax RateRecent IRS data shows that the top 1% of earners—those making over $663,000 annually—paid an average federal income tax rate of 26.1% in 2022.

., rentals) within the IRS timelines (45/180 days).Split Investment: Buying one long-term rental (LTR) and one short-term rental (STR) works if both are held for investment.

Hi @Todd Goedeke - The IRS looks at your total hours of participation across all activities, not whether you did 50% of each individual task like cleaning or landscaping.

Hi @Stephanie Joe - One more thing to keep in mind: for mortgage interest deductions, the IRS allows you to deduct interest on up to two residences (your primary and one secondary home), as long as both are used personally (not as rentals).

The IRS bases bonus depreciation eligibility on the placed-in-service date, not when the land was bought or construction started.The placed-in-service date is when the property is ready and available for use — typically the day you receive the Certificate of Occupancy (CO) or when you first list it for rent, whichever comes first.

I want to ensure this is done in a way that complies with California law, avoids triggering partnership tax treatment, and doesn’t lead the IRS or courts to recharacterize the arrangement as equity.

The main thing is to keep detailed proof of your hours and guest stays so you can show the IRS you really qualify, this is where people mess up.