As a fulltime W-2 earner it may be hard to claim REPS status, but material participation, cost segregation, and other strategies could benefit you.

The following looks at hypothetical purchases, anecdotally and in relative isolation, meaning there may be a reason (for instance to generate large tax losses for "active participation" investors to offset other income) for some individuals to undertake a particular kind of purchase.

Attend workshops, read books, listen to podcasts, and participate in online forums like BiggerPockets.

In 2022 I participated in a hard money loan and terms were for a year.

I view DSTs simply as a property with an address, a tenant, a lease, and a price - subject to the same performance conditions of the market, regardless of the fact that it's granted to a simple Trust for fractional investor participation.

The qualification is not material participation but active participation.

If you haven't been tracking your material participation, done a cost segregation, or any other techniques specific to real estate and just want someone to file on your behalf then there might not be a huge difference between H&R and a specialized CPA.

Being an active participant in the forums by sharing insights, answering questions, and initiating discussions can really help you stand out.Personalizing your messages when reaching out directly shows you've taken an interest in someone's work or portfolio, which can lead to more meaningful interactions.

The risk profile of these transactions if they were honestly divulged you would have very few people participating and for sure paying money to get taught how to do the very basics.

You also can take the loss if you have other passive income or if you (or your spouse, if married) work in a real property trade or business and you materially participate in the rental.