Legal Compliance: Ensure you're on top of zoning laws, landlord-tenant laws, and that your contracts are solid.

Legal Compliance: Ensure you're on top of zoning laws, landlord-tenant laws, and that your contracts are solid.

Legal Compliance: Ensure you're on top of zoning laws, landlord-tenant laws, and that your contracts are solid.

Perhaps it's different for your city & counties, or your attorney just has high compliance standards which is never a bad thing.

I know such sale would trigger transfer tax and stamp duty tax but I think the eventual capital gain tax down the road is probably more to offset. 

Typically a DST sponsor will only distribute through an SEC-registered broker-dealer for compliance and regulatory reasons.  

Increasing the rent that much will trigger vacancies. 

Now imagine facing a lawsuit because you missed a crucial compliance requirement.

Unsuccessful Property Search: Hours spent on unsuccessful property searches, where no purchase is made, do not qualify.On-Call Periods: Instances where you are on-call but do not actively perform work do not count towards material participation.Meeting Requirements:Maintain Detailed Records: Keep accurate time logs and records documenting your involvement in material participation activities, supported by evidence such as emails and calendar appointments.Seek Professional Guidance: Collaborate with a qualified tax professional to ensure compliance with IRS regulations and to optimize your material participation strategy.I hope this high-level overview gives you insight into what activities matter and ones that do not.

I've been tuning into the BiggerPockets podcast for a while, and I've finally decided to metaphorically pull the trigger on starting my journey in real estate.