All Forum Posts by: Pier Di Giorgio

@Andrew Hogan thank you for your response. I cannot qualify unfortunately because I have a full time W2 job and I would need to get over 2000 hours x year in order to get the REP status. I was told with short term rentals, the requirements are different.  

Thank you Wayne. Between closing costs, expenses, depreciation and improvement there will be losses. I heard that you can still deduct your short term losses even if you make over $150k. I am trying to understand if I can do it with a duplex where I rent the other side long term. Pier 

I am purchasing a duplex and I intend to utilize one side for long term rental and the other side for a short term rental such as Airbnb. Since I hold a full time position with a W2 making over $170k x year, I would like to know if I can deduct property's expenses/depreciation as an Airbnb and offset some of my active income. Thank you for your help. Pier

@Nicholas Aiola First of all I want to thank you for your helpful contribution to this forum, pretty impressive!!!! Here is my question: I am purchasing a duplex and I intend to utilize one side for long term rental and the other side for a short term rental such as Airbnb. Since I hold a full time position with a W2 making over $170k x year, I would like to know if I can deduct property's expenses/depreciation as an Airbnb and offset some of my active income. Thank you for your help. Pier 

@ Christina M. 

thank you for your response. If you don't mind me asking you, do you have a fulltime W2 job? in regards to the headings, for the Acquisition of Property: do you include the time you spend researching a property on the MLS? Thank you

it makes total sense. thank you for the advice. 

@ Natalie Kolodij & Russell Brazil

Thank you both for the detailed explanations. Do you think it makes a difference if with my W2 I work remotely and I also manage my own properties? 

@Marcus Auerbach

The answer is yes, they make a net loss after taxes especially because I have a cost segregation report done to the units. What I am trying to understand specifically is what I can include in those 2000 hours x year when I write my log. 

@ Natalie Kolodij I thought the activities to qualify as a REP are rather broad such as acquisition, sales, reconstruction, conversion etc...  I understand your point but I thought it's more appropriate for the material participation of the 500+ hr  in the rentals that I own. I believe there are seven tests to determine if you meet this second requirement. 
Do you think I can include my hours spent on surfing the MLS or driving around in search for new properties?

@Russell Brazil: Thank you for your response. I have read of cases of people working a W2 and claiming the REPS status. For instance, In Miller,T.C. Memo. 2011-219, a taxpayer who worked full time as a commercial boat pilot was able to satisfy the court that he spent more time on his construction work and rental properties. He kept credible, contemporaneous logs while also having witnesses testify to his extraordinary work ethic.

My question is if anyone had a personal experience in filing this status with a W2 job. I make more than $150k with my W2 so if I don't claim the REPs status, I won't qualify to offset the $25,000 in losses from my real estate investments.