Site Visits and Material Participation

If visiting requires a flight or hotel, we generally recommend waiting until the inspection period rather than spending money before the property is under contract. We will arrange for our agent to visit during that period and gather photos, videos and a clearer picture of the property. If you live nearby, an earlier visit may be worthwhile.

Visit during the inspection period if seeing the property will help you make the purchase decision. A post-close visit is useful for coordinating repairs, furnishing and preparing for guests.

Go with a clear checklist and coordinate with the agent or seller before closing. Use the visit to:

• Review inspection concerns and confirm repair priorities.
• Take measurements, photos and videos for the design and furnishing plan.
• Meet contractors, the designer or property manager and clarify responsibilities.
• Check parking, access, storage and the guest arrival experience.
• After closing, test equipment, confirm completed work and identify anything needed before opening.

Record any decisions and update the shared repair list so everyone works from the same plan.

Hands-on operating work may count, including guest communications, managing reservations and pricing, cleaning, maintenance, purchasing and installing supplies, and directly coordinating vendors. Setup and renovation work should be reviewed with your CPA.

Investor-only research or financial review generally does not count. Do not automatically include education, property shopping, travel or personal time. Your CPA should confirm qualifying activities and the annual participation test you intend to meet. IRS participation rules

Start now, as you begin property-related work. Keep pre-purchase and pre-opening work separately identified for CPA review; recording time does not automatically make it qualifying participation. Continue throughout each tax year.

Google Sheets is a simple option. Start with three columns: date, hours worked and a specific description of the task. Add the property, person performing the work and supporting links where relevant.

Record actual time promptly, split mixed personal/business activities and retain supporting emails, calendars, receipts or messages. Track each spouse separately. IRS documentation guidance

Yes. Your spouse’s qualifying work counts toward your material participation, even if they do not own the property or you file separately. Keep separate entries identifying who worked.

This differs from real estate professional status: spouses cannot combine hours to satisfy one person’s 750-hour and more-than-half-of-working-time requirements. IRS spouse participation rules