PROP HOURS BLOG
The PropHours Blog
Tax-smart insights for rental owners: REPS, the short-term rental loophole, cost segregation, and the material participation hour logs that make it all work.
November 2, 2026
Buying a Short-Term Rental in December: Can You Still Use the STR Loophole?
Bonus depreciation isn't prorated for a December purchase, but the tests that make the loss usable still run on the calendar year. Placed in service, real guest stays and the hours you can count, with a worked example.
October 27, 2026
New in PropHours: Lock Screen Timer, Widgets and Record Strength
Pause and finish your timer from the Lock Screen or an Android notification, see today's hours in Home Screen widgets, and check every record's strength while you still remember the details.
October 22, 2026
The STR Loophole in California: What Changes on Your State Return
California follows the short-term rental rules but not REPS or bonus depreciation. A side-by-side example shows how a $193,000 federal loss becomes a $32,000 loss on the California return.
October 16, 2026
Form 8582 for Rental Owners: Passive Loss Limits and Carryovers
Form 8582 is where passive rental losses get capped and carried forward. Who has to file it, the 2025 form line by line, how carryovers are released, and how material participation keeps a rental off it.
October 16, 2026
Rental Property Mileage Log: IRS Rules, 2026 Rates and a Free Template
Which rental trips you can deduct, what the IRS wants in a mileage log, the 2026 standard mileage rates (72.5¢, then 76¢ from July 1) and where it goes on Schedule E — with a free Excel template.
October 8, 2026
Do Spouse Hours Count for REPS and STR Material Participation?
For REPS, one spouse has to clear 750 hours alone. For material participation and the STR loophole, a couple’s hours add up. A test-by-test table, two examples and how to log it.
October 5, 2026
Short-Term Rental Tax Loophole Income Limit: Is There One?
No — the $100,000–$150,000 phase-out belongs to the $25,000 allowance for ordinary rentals. Why short-term rentals sit outside it, and the limits that do apply, including the 2026 excess business loss cap.
October 2, 2026
How CPAs Can Verify a Client’s Material Participation Hours
A review routine for preparers: identify the regime and the test, check the comparison side, and test the log’s timing and evidence — with a red-flag table, a client request list and what to keep in your file.
September 29, 2026
The STR Loophole for W-2 Employees: A Practical Playbook
Why REPS doesn’t fit a full-time job, which material participation test does, a weekly time budget — and why your cleaner’s hours are the real competition.
September 28, 2026
Are Airbnb Startup Costs Tax Deductible? What to Deduct, Depreciate or Amortize
Furniture, renovations, listing photos and pre-launch costs are each treated differently — and the day your rental is placed in service decides most of it. Includes a free startup cost tracker.
September 27, 2026
Free Material Participation Log Template (Excel, Google Sheets & PDF)
A free Excel, CSV and printable PDF hour log for STR and REPS owners — with a tab for other people’s hours, a 750-hour REPS tracker and a guide to filling it in so it holds up.
September 26, 2026
Depreciation Recapture: The Tax Bill Hiding in Your Rental Sale
You depreciated the building for years to cut your tax bill — when you sell, the IRS taxes that depreciation back at up to 25%. How recapture works, the allowed-or-allowable trap, and how to plan around it.
September 26, 2026
PropHours vs REPSLog: Why Choose PropHours?
Why choose PropHours? One $129/year Pro plan combines AI logging, property pacing, separate participant records and Schedule E preparation for your CPA.
September 25, 2026
Rental Property Tax Deductions: The Long-Term Landlord Guide
Every deduction a long-term landlord can claim — mortgage interest, depreciation, repairs, property taxes — and the passive loss limits that decide how much you can actually use.
September 24, 2026
Material Participation for Short-Term Rentals
The 7-day rule gets your STR out of the passive box — but the loss still needs material participation behind it. Which tests fit hosts, what counts as hours, and how to log them.
September 23, 2026
Airbnb Tax Deductions: The Complete Checklist
Cleaning, repairs, supplies, mortgage interest, depreciation — every write-off an Airbnb host can claim, plus the ones the IRS won't allow.
September 22, 2026
The STR Loophole (Short-Term Rental Tax Loophole), Explained
The 7-day rule can take your short-term rental out of the passive-loss box entirely — but only if you materially participate. The rules, the myths, and the records that matter.
September 22, 2026
Cost Segregation for Rental Property, Explained
A study can move 15–30% of a property's value into 5, 7, and 15-year buckets. How it works, when it pays for itself, and what still limits the deduction.
September 22, 2026
Real Estate Professional Status (REPS): Requirements and Tax Benefits
Two tests stand between rental owners and non-passive losses: 750 hours and more-than-half. Here is how REPS actually works — and the hour log that proves it.
September 22, 2026
The 100-Hour Trap: Property Managers and STR Tax Deductions
You cleared 100 hours — but your property manager logged more. Why the 100-hour test is a comparison, not a quota, and five ways to beat it.
September 22, 2026
How to Prove Material Participation
Your CPA asks "can you prove these hours?" — here is what a log entry that holds up looks like, what counts as hours, and the seven tests in one cheat sheet.
Start with the fundamentals
New to material participation? Browse our seven plain-English guides to the IRS tests, or estimate your savings with the STR loophole calculator.