Availing Cost seg accelerated depreciation as an 'active participant'

[Raja Nahs]

I'm planning to do a cost seg and use accelerated depreciation for properties bought in 2022. My plan is to use this to offset  non-passive income. I know I should qualify as a REP to do this, but my CPA is saying that the first year of property purchase is considered as an 'active participant' and don't have to be a REP. I'm not sure if this accurate.

Would appreciate your insights...thanks a bunch.

[Linda Weygant]

Whether or not you qualify as REP is a test of the full set of facts and circumstances.

There is not "rule" about first year being considered active participant.  That's just.....   either made up or misunderstood.

Perhaps a real estate focused CPA who know these rules inside and out would be a better person to engage with.