W-2, 1099, etc.) with passive income/loss from my rentals (STR, LTR).AnswerThere are a few ways, but the most common for real estate investors is to own a rental that 1.) meets the IRS requirements to be considered an STR and 2.) fulfill the material participation requirements (this doesn't require Real Estate Professional Status or REPS).

Can you elaborate or can we hop on a call?

The Internal Revenue Service (IRS) imposes taxes on the capital gain at a specified rate.

But knowing its value is key for taxes.IMPROVEMENT VALUE:This is the value of all the upgrades you make to your property – like a new roof or an updated kitchen.These improvements can be depreciated, which means tax savings for you.3115:Filing this form can allow you to claim missed depreciation from past years.Basically you are letting the IRS know that you are moving from the standard deduction to an accelerated deduction.RECAPTURE:It's payback time!

@Brian Carmichael Your proposal violates IRS self-dealing and prohibited transaction rules.

Since the Internal Revenue Service (IRS) doesn’t consider child support taxable income, I would not consider it in the rent calculation unless you have a HUD-specific home.According to hud.gov, “[rental property] owners must count alimony or child support amounts awarded by the court unless the applicant certifies that payments are not being made and that he or she has taken all reasonable legal actions to collect amounts due, including filing with the appropriate courts or agencies responsible for enforcing payment.”So, does child support count as income for renting?

However, check if it meets IRS guidelines for repair deductions or safe harbor limits.

Is there time limits to convert, I understand that there may be depreciation recapture, but if I keep that as a primary residence say for 20 years or longer am I going to have problems with IRS. or at some point way down the road there will be depreciation recapture or does that go away after awhile.

If the proper reports and documentation are not completed, you run the risk of failing an IRS audit and the cost segregation not being honored.

@Ashish Acharya thank you for your response, but I feel I'm still missing/misunderstanding something - you said "the IRS allows spouses to combine their time for material participation purposes", followed by " only one of the spouse's hours counts for the REPS status, which means only one of your efforts can count" - which one it is?