My CPA told me that those hours only count towards the 750-hour requirement, but not the material participation time for the rentals, because the rentals have not been placed in service yet.

We plan to do cost segregation and bonus depreciation in all our LTR and offset the paper loss of the properties (passive) with my wife W2 (active).I initially thought we could only depreciate 50% of my wife's W2 due to the 50-50 ownership, but I have learnt that if she does the material participation, we could use 100% of the depreciation.

This means the average stay at your property cannot be more than 7 days, you will need to pass the tests of Material Participation or being a Real Estate Professional, and keep a log of the hours you spend performing “activities” for the real estate.In order to Material Participate, you need to pass one of the seven tests for Material Participation on the property.

Be Fair on PricingI know what materials cost and how long a rehab should take, so if a bid comes in way too high, I know right away the contractor isn’t treating me fairly.

AI a response then let the conversation begin.Monetize- after day 3 of a post reference paid for material or advertised material.  

@aj @AJ Wong do you know of any app or software one can use to keep track of material participation hours?  

Thank you - I have an LLC myself and have learned a lot over the last year and I agree this is very important.

All asset classes are getting bid up as folks with material wealth chase yields, and there are still tons of people sitting on sidelines with cash.

In fact, the property appraised for $282,000.

My CPA told me it counts towards the 750 hours requirement, but not the material participation time for the rentals, because the rental is not placed in service yet.