Documenting Material Participation

Documenting Material Participation

Documenting Material ParticipationJason Malabute, CPA, MBA, CTC
Published on: 12/09/2026

Explains how real estate investors can document material participation in short-term rentals to defend non-passive loss treatment if challenged.

Short-Term Rental Tax LoopholeMaterial Participation TestShort-Term Rental Documentation100-Hour Test Real EstatePassive Loss Rules Real EstateReal Estate Professional StatusShort-Term Rental Average StayIRS Audit Real Estate InvestorsProperty Manager Time TrackingNon-Passive Loss Short-Term Rental

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