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Compass CPA, P.C.

Understanding REPS and STR Material Participation: Eligible Activities You Need to Track

Illustration explaining REPS and short-term rental material participation activities for real estate investors.

Real estate investors pursuing the tax benefits of Real Estate Professional Status (REPS) or the short-term rental (STR) strategy often focus on meeting required participation hours. However, hours alone do not satisfy IRS requirements — the activities behind those hours must qualify as material participation and be properly documented. Misunderstanding which activities qualify as material […]