321. Does Travel Time Count Toward Material Participation?
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Apr 11, 2025
In this engaging episode, the hosts tackle real estate investors' burning tax questions. They explore intriguing topics like how short-term rental losses can impact income and the details of the QBI deduction. Listeners learn about the nuances of travel time and its role in material participation, alongside strategies for navigating home improvement records. They also discuss the critical 14-day rule and the complexities of bonus depreciation. It's a treasure trove of practical advice for optimizing tax benefits in real estate!
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volunteer_activism ADVICE
Short-Term Rental Loss Carryover
Short-term rental losses qualifying for the loophole are active.
These losses offset current-year income, with excess carrying forward as NOLs.
volunteer_activism ADVICE
Travel Time and Material Participation
Travel time to rental properties generally doesn't count toward material participation.
While mileage is deductible, relying on travel time for material participation is risky.
volunteer_activism ADVICE
Grouping K-1s for QBI Safe Harbor
Group multiple K-1s for QBI deduction's rental safe harbor.
Ensure all properties within the group are either residential or commercial, not mixed.
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In this Q&A episode, Ryan and Thomas answer real estate investors’ most pressing tax questions. From short-term rental loopholes to QBI deductions, they break down some of the most misunderstood topics in real estate tax strategy and provide practical, real-world guidance.
They discuss:
- STR Losses & NOLs
- Travel Time & Material Participation
- QBI Safe Harbor
- STR Conversions Mid-Year
- Bonus Depreciation Recapture
- Home Improvement Records
- The 14-Day Rule Explained
Remember to submit your questions at contact@therealestatecpa.com or the Tax Smart Investors Facebook group.
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