Calculator · Stage 4

STR Material Participation Estimator

The "Short-Term Rental Loophole" requires you to prove you materially participate. Use this tool to check if your logged hours meet one of the three main IRS safe harbor tests.

Educational tool only. Hours must be substantiated with a contemporaneous time log. Investor-level activities (like reviewing financials) generally do not count towards these tests.

Owner Participation (Annual)

You and your spouse's hours can be combined for these tests. Only include active participation (managing, cleaning, repairing, communicating with guests).

Your Hours

Spouse's Hours

Non-Owner Participation (Annual)

You must include everyone who works on the property, even if they are unpaid (e.g., kids, friends) or paid contractors.

Cleaners' Hours (Total for year)

Handyman / Maintenance Hours

Co-Host / Property Manager Hours

Other People's Hours

Evaluating...

Please enter your hours to see if you qualify.

The 3 IRS Safe Harbor Tests

You only need to pass one of these tests to qualify as materially participating.

Test 1: The 500-Hour Rule

FAIL

You and your spouse participated for more than 500 hours during the year.

Your Household Hours:—

Test 2: Substantially All Participation

FAIL

Your participation constitutes substantially all of the participation for the property (no one else did any significant work).

Non-Owner Hours:—

Test 3: 100 Hours + More Than Anyone Else

FAIL

You participated for more than 100 hours AND your hours exceed the hours of any other single individual (including cleaners and PMs).

Your Hours:—

Highest Non-Owner (Individual):—