You generally can’t claim the $80k loss, and you may need to file a gift-tax form (though you likely owe no tax).

In most cases, the property manager ends up being the one truly running day-to-day operations, which makes it hard for the IRS to see you as “materially participating.”To meet REP requirements, two things have to happen:-You (or your wife) need to spend more than 750 hours a year on real estate activities, and-Those hours have to make up more than half of total working time for the year.The challenge is proving that level of involvement when a property manager is already handling leasing, maintenance, and tenant issues.

⏰This might be the most dangerous advice in estate planning.Here's what most practitioners miss: 📚While everyone focuses on the 10-year NFTL expiration, the IRS has a nuclear option hiding in plain sight.Under IRC §7401, the IRS can file suit in federal district court before the Collection Statute expires and convert your "temporary" tax problem into a renewable judgment lien lasting 20+ years.The timing game becomes Russian Roulette with a countdown timer.

.#4: I would recommend self managing so you know what’s involved in managing the property.

There are also ways to file and track issues with construction through marking up plans and storing files and photos.

If you’re looking for a solid STR co-host in DC, check local Airbnb Facebook groups or the “Co-Host Marketplace” on Airbnb — lots of great local options there.Co-hosts usually charge less (10–20%) and offer flexibility, but you’ll stay more involved.

She can continue with her normal withholding, and any surplus amount will be refunded when you file your return.

Short answer: Probably.If they aren't licensed and do work without filing permits, obtaining COs, etc., it will be challenging to resell the property for top dollar.If the properties need minor/cosmetic work that doesn't require a license, then you might be OK. 

I just made the move to the Nashville area, and I’m excited to get involved in the local real estate community after selling all my rentals and my personal home in Minnesota.A little about me:I worked as an HVAC service technician for the past five years; now I’m looking to pivot into real estate full-time here in Tennessee.I previously held my real estate license in Minnesota, where I worked alongside other agents to learn the ropes and helped with showings and appointments they couldn’t attend.

Under Section 121, if you owned and lived in the property as your primary residence for at least 2 of the last 5 years before selling, you can exclude up to $250,000 of gain if single or $500,000 if married filing jointly.Since you moved out in January 2022, your 5-year window ends in January 2027.