Hi! I just want to make sure I am 100% understanding when you need to have material participation and when you don't to take advantage of the 100% depreciation of qualified improvements to your STR property: 1. If you have W-2/1099 income and you want to write off your loses against your W-2/1099 income, you need to have material participation. (Reason: Because the W-2/1099 is active income and the STR real estate is passive unless you have material participation to make it active) Is that Correct? 2.If you don't have a W-2 and you only invest in real estate, you can take advantage of the 100% depreciation for qualified improvements for a property against your passive investment earnings. No material participation is required. (Reason: All of the income would be considered passive) Is that Correct? 3.I read that you qualify for material participation if you took part in the business for five of the previous 10 taxable years. No specific hours required. (https://www.reihub.net/resources/short-term-rental-tax-loophole/). Is that Correct? 4. If you don't meet the material participation requirement you can still take advantage of the 100% depreciation against any passive income. If the depreciation is more than your passive income, it will carry over to the next year. Is that Correct? Thank you!!

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I have a single member LLC pass through umbrella that holds all my individual STR LLCs. Can I pay myself as an employee so that I can contribute 72k after tax and do a mega back door Roth? Is it true I don’t need a C or S corp to do this? A friend does this using mysolo401k.net. He says I have to pay payroll taxes at 15%. I’m assuming that’s 15% of the 72k? He has the employer contribute 72k and the employee contribute 0