So yes, you need to set aside enough money to pay future taxes.Taxes are calculated only on your net profit - i.e. after everything is deducted, including labor & materials, holding costs, financing costs and business overhead such as marketing and driving. 

They are unique in the fact that the development is completely vertically integrated project in which they do everything from manufacturing the building materials to manage your property.

How is material participation defined?

Better pricing on material?

If he is not eligible to claim REP status, is he eligible to claim he materially participates in the deals (even the ones with <5% ownership)?

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.

Good contractors don't walk off jobs and they can justify their bid with a written estimate showing cost of materials and labor so you can compare it with any other bid.

Hence you needing to retain an Architect and have them do due diligence into the feasibility at which part of their services would be checking what is able to be built in compliance with the applicable jurisdictions. 

Hey Thomas, seasonality may be a factor but you may just need to switch it up with new marketing material as the old may have been seen before.

Since you're not working, you may qualify for REPS, but you need to meet the750-hour requirement and materially participate in your properties.The $300k withdrawal will be taxed as ordinary income, so using cost segregation to create depreciation losses could help reduce your taxable income.