PropProof empowers Airbnb, STR, and REPS investors to log hours contemporaneously, attach undeniable receipt & photo evidence, and deduct massive rental losses against active W-2 and 1099 income.
Under IRC §469, rental activities are passive by default unless you pass one of the material participation standards with contemporaneous evidence.
IRC Reg. §1.469-5T(a)(3)
For short-term rentals (average guest stay ≤ 7 days): Participate for more than 100 hours AND more than any other individual (including cleaners and property managers).
IRC §469(c)(7)
Qualify as a Real Estate Professional by spending at least 750 hours in real property trades, and over 50% of your personal working hours during the tax year.
IRC Reg. §1.469-5T(a)(1)
Participate for more than 500 hours in the activity during the year. Regardless of anyone else's involvement, you automatically satisfy material participation.
In landmark tax court rulings (such as Moss v. Commissioner), the IRS consistently disallows retroactive calendar logs. PropProof creates authentic contemporaneous records that withstand scrutiny.
Log common Airbnb & rental tasks instantly: Cleaning inspection, dynamic pricing, guest messaging, emergency plumbing, lease drafting, and site visits.
Snap photos of Home Depot receipts, contractor invoices, guest communication screenshots, and property inspection photos. Locked to the time log.
Start a timer when you step on the job site or begin managing reservations. Precise down to the minute, creating undeniable timestamp integrity.
Visual donut charts and progress gauges show remaining hours, qualification ratios, and per-property allocation across the entire tax calendar.
Export a CPA-certified CSV/Excel audit log ready for Schedule E and Form 8582 attachments. Send directly to your tax accountant.
Track hours in basements or remote cabin rentals with zero reception. Idempotent UUID architecture syncs your hours safely as soon as you reconnect.
IRS Revenue Agents examine your log's contemporaneity. Here is why spreadsheets fail:
| Standard | Manual Excel / Notes App | PropProof Contemporaneous Log |
|---|---|---|
| Record Timing | Post-event reconstruction (Flagged as non-contemporaneous) | Real-time stopwatch & contemporaneous date logging |
| Supporting Evidence | Scattered paper receipts or missing proof | Cloud-anchored photos of invoices, receipts, & messages |
| Task Granularity | Vague summaries ("worked on house 5h") | Granular IRS-compliant category & property breakdown |
| CPA Collaboration | Hours spent reconciling messy spreadsheets | Instant audit-ready CSV export with total hours summarized |
Under Treasury Regulation §1.469-1T(e)(3)(ii)(A), an activity is NOT considered a rental activity if the average period of customer use is 7 days or less. If you materially participate in this activity (e.g. by logging 100+ hours and more than any other individual), your rental tax losses become non-passive and can offset ordinary active income (such as W-2 wages or 1099 profit).
"Contemporaneous" means recording activities at or near the time they occur, rather than reconstructing hours months or years later during an IRS examination. The IRS and Tax Courts routinely throw out post-audit estimations without contemporaneous logs and corroborative evidence.
Under IRC §469(c)(7), one spouse must independently meet the 750-hour requirement and the 50% personal service requirement. However, once that spouse qualifies as a real estate professional, spousal participation counts toward material participation in specific properties.
All logs, photos, and evidence are stored securely on dedicated cloud servers with TLSv1.3 encryption in transit and AES-256 encryption at rest. You retain 100% ownership of your records and can export your entire audit history at any time.
