How is material participation defined?

Under this rule, if your average stay is seven days or less and you materially participate in managing the property, you can treat it as non-passive income and potentially use tax losses (like depreciation) to offset other income.

If not, do you materially participate in the syndication or are you simply a limited partner?

To qualify as a real estate professional, a taxpayer must meet both of the following criteria:Taxpayers perform more than 50% of services in real property trades or businesses in which they materially participate.

2-if you started to self-manage in January 2025 and managed for the remainder of the year would you not satisfy the 100 hr rule and participate more than any others?

**Community Investment Program (CIP)**: Some local banks or financial institutions partner with government programs to provide low-interest loans or better lending terms for landlords who participate in affordable housing programs like Section 8.

I know that participation in operations affects the tax benefit in some ways? 

I haven’t heard the story of  the investor who rode the coat tails of a wholesaler to the same level of success but networking and building relationships with wholesalers seems to be prioritized over all others industry participants. 

At that price, I suspect they don't get very many students at once. well i dont personally know. but when i was doing loans for Armando Montalongo's students and Nick Vertucci students at the 40k event there would be at least 200 paid participants. and about 350 to 400 folks in the huge conference rooms and then about 10 break out rooms to discuss other real estate niches. 

The number one benefit for a high income earner that invests in long-term investments is that the depreciation will shield your rental income from your effective tax rate.if you are a high income earner, you are likely around the 35% federal tax bracket and another 5-10% tax bracket if you are in a state with a taxInterest income will be taxed at potentially 45% + 3.8% net investment income taxDividend income will be taxed at potentially 30% + 3.8% net investment income taxRental income potentially at 0%I think a lot of people get disappointed that their tax burden doesn't decrease.It can potentially decrease but it will require proper planning along with some level of participation with the real estate.