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STRVue Knowledge Base / Public reference

The rules,
annotated.

VolumeI
Issue04 · Apr 2026
Entries19
Last revision12 Apr 2026
Tracked rules
19
across qualification, basis, exit
Citations
142
to code, regs, cases, IRS guidance
Active changes
4
in the last 60 days
Reviewed
12 Apr
CPA-of-record monthly
⌘K · search
01 Qualification 8 entries · view all →
§469-1T
Non-rental activity exception (the 7-day rule)
The hinge of the entire STR strategy
Temp. Reg. §1.469-1T(e)(3)(ii)(A)
→
§469(c)(7)
Real estate professional status (REPS)
750-hour and more-than-half tests
IRC §469(c)(7) · Reg. §1.469-9
→
MP·T1
Material participation Test 1 — 500 hours
The unambiguous test, when achievable
Temp. Reg. §1.469-5T(a)(1)
→
MP·T3
Material participation Test 3 — 100 hours, most
The most-cited fallback for owner-operators
Temp. Reg. §1.469-5T(a)(3)
→
02 Depreciation & basis 6 entries · view all →
§168(k)
Bonus depreciation phase-down
100% → 80% → 60% → 40% → 20% → 0%
IRC §168(k)(6) · TCJA / IRA
→
CSEG
Cost segregation studies — engineering vs. rule-of-thumb
When the IRS will and won’t accept
IRS ATG (2017, rev. 2022)
→
BASIS
Land vs. improvements basis allocation
Tax assessment, appraisal, or alternate methods
IRS PMTA 2009-005
→
03 Recapture & exit 5 entries · view all →
§1245
Ordinary-income recapture on bonused personalty
Why §1245 is the sting in the tail of cost-seg
IRC §1245(a)(1)
→
§1250
Unrecaptured §1250 gain at 25% max
The slower-moving recapture on real property
IRC §1(h)(6) · §1250(b)(3)
→
§1031
Like-kind exchange — recapture deferral mechanics
Carrying basis (and therefore recapture) forward
IRC §1031 · Reg. §1.1031(a)-1
→
Changelog · last 60 days

The record corrects itself in public.

When we get a citation wrong, the correction is logged here with the date.

12 Apr 2026
CORRECTION
Updated §469(c)(7) entry to reflect the 2025 Sands case clarification on real-estate-trades aggregation. Position unchanged; citation tightened.
03 Apr 2026
NEW ENTRY
Added Material Participation Test 6 (significant participation, all activities >100 hr, aggregate >500 hr). Rare in STR practice — included for completeness.
28 Mar 2026
NOTE
Bonus depreciation entered its 20% phase for assets placed in service in 2026. Engine schedules updated; existing studies unaffected.
14 Mar 2026
CORRECTION
Clarified that spousal hours count for material participation regardless of title (§469(h)(5)). Several existing entries cross-referenced.