Compass CPA, PC

❓ Confused about the IRS 100-hour rule?

You're not alone.

From property managers and contractors to documentation and qualifying activities, there are plenty of questions surrounding the material participation test.

Our latest FAQ answers the most common ones in one place.

👉 Read the full FAQ: https://tinyurl.com/bdds5kwf

No two short-term rentals are managed the same way.

Some owners do everything themselves. Others work with cleaners, contractors, or property managers. Each setup can affect how material participation is evaluated under the 100-hour test.

Swipe through six real-world examples to see where your rental may fit. 👉

Read the full article in the comments.

🏡 Think working 100 hours on your short-term rental is enough to meet the IRS test?

Not always.

The 100-hour test isn't just about your hours—it's also about how your participation compares to everyone else involved in operating the property.

Our latest blog walks through six real-world STR scenarios, including:

✔️ Self-managing your Airbnb

✔️ Working with multiple contractors

✔️ Hiring a property manager

✔️ Seasonal rentals

✔️ A situation where the owner doesn't qualify

Seeing real examples can make these IRS rules much easier to understand.

👉 Read the full blog: https://tinyurl.com/3j4z857h

Would the IRS count the hours you're logging for your short-term rental?

Some day-to-day tasks generally count toward material participation. Others—even if they're related to real estate—typically don't.

This carousel walks through common activities so you can better understand what may support your tax position.

Swipe through and test your knowledge. 👉

Read the full article in the comments.

🏡 Two Airbnb owners each spend 150 hours on their properties.

One qualifies for material participation.

The other doesn't.

What made the difference?

It wasn't the number of hours.

It was how those hours were spent.

The IRS distinguishes between qualifying operational work and activities that generally don't count.

Understanding that difference can have a significant impact on your tax position.

Our latest blog explains:

✔️ Which STR activities generally qualify

✔️ Which ones don't

✔️ Common mistakes owners make

✔️ Tips for keeping stronger records throughout the year

👉 Read the full guide: https://tinyurl.com/3f5yf7r7

Earning REPS isn't about being busy.

It's about spending your time on the right activities.

Some tasks move you closer to qualifying. Others—even if they're related to real estate—generally won't count.

Swipe through for a simple breakdown of qualifying vs. non-qualifying activities and why keeping good records matters. 👉

Read the full article in the comments.

🏘️ Think every hour you spend on real estate counts toward REPS?

Not necessarily.

The IRS has specific rules about which activities qualify—and getting them wrong could put valuable tax deductions at risk.

Our latest blog covers:

✔️ Activities that generally count toward the 750-hour requirement

✔️ Activities that typically don't qualify

✔️ Common REPS mistakes to avoid

✔️ Tips for documenting your time throughout the year

Knowing the difference can help strengthen your REPS position and support your tax strategy.

👉 Read the full blog: https://tinyurl.com/mrxpcb9u

Selling a business doesn't always have to be an asset sale vs. stock sale debate.

There are hybrid structures that can help align the interests of both buyers and sellers, potentially creating tax advantages while keeping the transaction moving.

This carousel explains:

✅ Section 338(h)(10)

✅ Section 336(e)

✅ Split deals

✅ Rollover equity

Swipe through to see how these structures work. 👉

Read the full article in the comments.

🤝 Selling a business doesn't have to be an all-or-nothing choice.

Traditional stock sales and asset sales each come with trade-offs—but a hybrid structure may help balance the needs of both buyers and sellers.

Our latest blog explains:

✔️ What a hybrid stock & asset sale is

✔️ How it can benefit both parties

✔️ Common hybrid structures

✔️ When this approach may make sense

If you're planning to buy or sell a business, understanding your options could lead to a better outcome.

👉 Read the full blog: https://tinyurl.com/3c7ee72y

I've seen business owners spend months negotiating the purchase price...
..only to find out the biggest financial difference came from how the deal was structured.

Two deals can have the exact same purchase price but produce very different tax outcomes for both the buyer and the seller.

That's why I put together this carousel.

It breaks down the difference between a stock sale and an asset sale, why each matters, and how the right structure can affect taxes, future deductions, and liability long after closing.

Swipe through the carousel, then check out the full article using the link in the first comment for a real $5 million example.

If you were selling your business tomorrow, would you know which deal structure benefits you most?