We are looking towards STRs in order to lower our W-2 taxable income via cost seg and bonus depreciation.I believe my line of work qualifies me as a REP, but what I am not clear on is whether I would still need to meet the 'material participation' requirements in our rental business in order for our losses to be non-passive.

One unit passed immediately, the other unit they asked me to professionally clean the carpets.Slow on the paperwork side, but for both tenants, I can see them staying for many years.Depending on the state, they may have a one time incentive bonus to sign up. 

Unlike long-term rentals, STRs can be treated as non-passive, allowing depreciation deductions, including bonus depreciation (40% in 2025) on eligible assets.For tiny homes, tax classification matters:If mobile, it is considered personal property, allowing 100% depreciation under §179, subject to income limits.

Because I did not buy this on Biggerpockets, am I not able to access the bonus content.

Bonus: So, eventually I had some tenants get on board that were older and not tech savvy so there was going to be no way to get the to use RentRedi anyways, so I decided to cancel. 

As inflation drives rent growth, properties in stable markets like the Midwest can continue to deliver returns even in higher-rate environments.Market Conditions Favor Real Estate RecoveryThe commercial real estate (CRE) market has faced significant challenges in recent years, but signs point to a recovery:Bottom of the Market Cycle: CRE appears to have reached its low point in late 2024, with 2025 marking the start of a slow recovery phase.Limited New Supply: High interest rates have curtailed new construction, which should drive rent growth in the coming years.Policy Changes on the Horizon: There is growing discussion about potential policy shifts under the new administration, including a return of 100% bonus depreciation and lower interest rates.

If transferring the property to an LLC, be mindful of the due-on-sale clause, and note that an LLC itself does not offer tax savings unless electing S-Corp status, which is rare for rentals.To maximize tax benefits, consider cost segregation, bonus depreciation, and short-term rental (STR) strategies, which could allow you to offset W-2 income if structured properly.

Interest always paid on time, and principal was returned with bonus right on schedule.

Key provisions like bonus depreciation, the 20% pass-through deduction, and 1031 exchanges have saved investors thousands of dollars each year.

I think having the space available as furnished space for family is a huge bonus and might just recommend not trying to overdo it if you don't need to.Good luck,Chris