Material Participation Hours for Real Estate Professional Status

[Rose I.]

Hypothetical situation: If I am working towards material participation hours on a relatively small property in terms of total value but get there in terms of the technical hours and the test, and say later in the year I purchase multiple properties but am unable to generate material hours on those properties (ex. maybe even <10 hours), would I be able to aggregate all properties for the material participation test and thus qualify the properties bought later in the year for the benefits of bonus depreciation with a cost segregation (helping to offset my husband’s W-2 income)?

[Yonah Weiss]

@Rose I. Short answer, yes. As long as it's all within the same year, hours spent on one property qualify you for the designation, as long as you aggregate all of the properties.