Which livestock species are best suited for ranches engaged in direct participation programs?

Yes, I had to explain active participation vs. material participation to the CPA too (insert eye roll).

Participate in online forums, get in touch with seasoned investors, and attend neighborhood real estate gatherings.

Here is what IRS has to say about it :https://www.irs.gov/retirement-plans/plan-particip...

My wife will be materially participating as the REP for this property btw.

If not much time at all, then no, the rental income is not subject to KC income tax.The IRS defines active participation in an activity of 250 hours or more a year, material participation as 750 hours or more.

What is required is material participation, not substantial services.

@Christopher FrazeTo clarify, you need to meet two factors:1) More than 50% of the personal services you perform in all businesses during the year MUST be performed in a real estate business you materially participate.2) You must work at least 750 hours in a real estate trade or business.If either you or the spouse qualifies as a Real Estate Professional then you will be permitted to deduct all passive activity losses from your rentals against ordinary income from whatever sources derived.

What changes would you suggest in terms of increasing landlord participation?

Assuming that John’s wife is managing the Airbnb Rental and qualifies as a material participant, John Doe’s family can deduct $150k from their w2 income for the year 2022 (Bonus depreciation 100%).This would equal $33,000 in a tax refund for the family.