We met all non-passive requirements and can provide proof to show that our projected annual materially-active involvement is at least 500 for 2023.We met with our CPA and he brought to our attention that we had a loss of -$107k.

I have some questions about the material participation rules for the STR tax loophole.

As we all know material costs did go up, did contractors decide to double as well?

The courses really help, only if you actually study the material with the intention to learn instead of memorizing the material and the practice questions.

Some people get tripped up thinking "I bought all this raw material and left it on site, and that should count toward my value". 

They are great for storing materials on the job site.

With the increased cost of materials and labor their losses are exceeding policy income.

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The contractor takes that money and buys some materials and holds some money to pay his labor for a few weeks and then he can work off the draws from there and then at the end of the project you get your 20% back minus draw fees.   

Definitely, if you know what you are doing, keeping the costs low (which is difficult in this market with cost of material rising), it might work out.