You need to pass "material participation" test and personal use test, but that's for your future tax professional to explain.Yes, bonus depreciation is possible, but only on the current value of the personal property and land improvements.

You could also test them with questions like, do you have any attorneys you recommend that write redemption deeds.   

Yeah I think it's a unique opportunity to test waters in short term rentals or "mid-term" rentals with less risk.

I might have some pretty creative work arounds but haven’t tested them out yet.Or, maybe its time to start putting STR Micronations together

They aren't into doing "work", like taking classes, passing tests, doing reports, paying brokerage fees and being supervised.

Qualification Tests Overview:50% Test: Real estate professionals must dedicate over half of their annual working time to a "real property trade or business."

Similar to #2 but its based on the eye test, looks for rundown homes in your target neighborhood.

On small balance preferred equity, rates are 15%+ so this fails that test in my opinion.

While this may exempt it from being classified as a rental activity, active participation remains a requirement, necessitating compliance with three tests: spending 500 hours on the property, dedicating at least 100 hours (and more than any other participant), and performing all the necessary work needed.Additionally, long-term viability and consideration of depreciation recapture are important concerns.

2) Can an MLO operate in multiple states after passing those state-specific tests?