For materials and/or services for any of my investment properties where the contractor/person does not give me a receipt, I do one of two things:1).

Now, for my learning if you please, does it make a difference that i "materially participate" in the business?

And lots of other goodies, which I won't bore you with cause it will sound like self promotion, which isn't my intention here.

Happy to send over some material that might be helpful as you get started.

In the year of the cost seg, you need to qualify for STR loophole (materially participating in your rental activities by spending 500 hours, or 100 hours and more then anyone else, or doing all the work yourself.)

He also drew  floor plan, elevations, materials list, plumbing, electrical, fenestration, R values list, etc. . 

It seemed reasonable to me  However, it was after I expressed frustration that I had sent all the info they asked for and had yet a to have anyone reach out to me regarding the company’s investment opportunities, I was told I did not fit their customer profile and that they would not be able to work with me.Anyway, they continue to contact me with marketing material from time to time.  

While this is being promoted as a safe way to get into real estate by some experts or gurus, there is no way to secure your loan with real estate when the money is used as a deposit before the purchase is closed.

Thus, the taxpayer is not treated as materially participating in the combined rental real estate activity until the taxpayer materially participates under the tests for determining the material participation of a limited partner. 

He thought about it for 30 seconds, told me I was right, and had all his printed marketing materials trashed the next day and reprinted without that line.