Within the Inflation Reduction Act that was just passed a couple weeks ago, the IRS just allocated $78 billion to hire 87,000 new IRS employees.

It serves as a designation for professionals actively involved in the oversight and operation of their rental portfolios.Summary of Requirements:To qualify for Real Estate Professional Status, investors must fulfill two key criteria:50% Rule: Allocate over 50% of all annual personal service hours to real property trades or businesses.750-Hour Threshold: Spend more than 750 hours materially participating in specified real property activities, including rental operations.Navigating these criteria demands meticulous attention to detail and a thorough understanding of IRS regulations.

The IRS has tiers of accepted cost allocation techniques for real estate - a total of 6 tiers! 

You will allocate many of your deductions between Schedule E and Schedule A.

That said, given my fact pattern of a condotel- how do I even try to allocate each individual who might be employed by the management company vs the number of units in the building.

@Will Gaston I would suggest you at least get it inspected and see what the worst case number would be and then reassess.I would reevaluate numbers - if you bring in $8900 per month, and have to allocate the recommended 50% in expenses, and $3300 in PITI, you are bringing in $1150 with so many properties to deal with. 

Hello,You should have the security deposit allocated to a specific business account. 

Then they said that I couldn't get the 10k USD back because "the funds had already been allocated".

I mean do I consider it as a regular loan/mortgage and set a certain amortization period to be able to calculate monthly HELOC interest  payment, and allocate as % to the "principal payment"?  

Thanks all for the input - I've never set one up before but I imagine you can create properties and track from that perspective plus the overall rental business (ex. some expenses get allocated amongst multiple properties)?