📋 For CPA Review · Client is Jordan Ueltschy · Meeting Jul 15 · 10 AM
🎣 CPA Validation Guide

Every tax rule RentReel implements, with IRC citations.

A one-page audit of the tax logic in RentReel — so you can validate what's right, flag what's wrong, and suggest what's missing. Built by an STR operator who cares about doing this correctly.

The App in 60 Seconds

What RentReel does

STR-first bookkeeping SaaS. Ingests bank + credit card + PMS (Hospitable/Guesty/Hostaway/OwnerRez/Lodgify) + cleaning (Turno) + mileage CSVs, auto-categorizes to Schedule E line items, and layers a Tax Loophole Tracker (REPS + §469 material participation + Cost Seg estimator) on top.

Target user
STR / LTR / mixed portfolio operators. Currently 5 properties across 3 LLCs in Jordan's own account.
Pricing
Free tier · Pro $39/mo · Pro+ Tax $89/mo (unlocks loophole tracker + AI 1098 extract)
Data model
Client-side + Supabase Postgres (encrypted). RLS enforced per-user.
Output for CPAs
Multi-tab Excel Schedule E export + read-only share link for client-CPA collaboration.
CPA Experience

How CPAs access client data

Two paths — pick whichever fits your firm's workflow.

🔗

Read-only share link

Client generates a URL from their Settings page. Data is encoded in the URL fragment — never hits our server. Open in any browser. See properties, Schedule E, loophole status.

Best for: quick year-end reviews. Zero friction. No login. Client controls what you see + revokes access by generating a new link.

🔑

Free CPA account (code: CPAREVIEW)

Sign up at app.rentreel.co with promo code CPAREVIEW — free lifetime Pro+ Tax. Explore full functionality, add your own test properties, run Excel exports.

Best for: validating logic yourself + comparing to your own workpapers. This is how we'd like you to review it.

🎯 Try the demo (no signup) → 🔑 Sign up with CPAREVIEW →
The Meat

Tax rules we implement

Every rule below has an IRC citation, an implementation summary, our confidence level, and a specific question we'd love your take on. Circle back on anything.

Real Estate Professional Status (REPS)

IRC §469(c)(7) · Reg §1.469-9 · Publication 925
Solid
Rule

Taxpayer or spouse must satisfy both tests: (1) 750+ hours/year in real property trades/businesses AND (2) more than 50% of all personal services in RE. If either spouse qualifies on a joint return, ALL rental losses become non-passive.

How RentReel implements

Hours Log tracks entries per property with categories (Repairs, Management, Cleaning, Guest Comm, Turnover, Maintenance, Admin). Dashboard shows running total vs 750 threshold + percentage of total work hours (user enters non-RE hours). Cross-references with mileage-derived hour estimates (30 mph avg) and cleaning/repair days from bank data via Hours Reconstruction Wizard.

Ask you: Are we handling the "more than 50%" test correctly by asking users to enter their annual non-RE hours (W-2 + side businesses)? Is there a stricter definition of "personal services" you'd want us to reflect? The current copy says "all your personal services in RE" — do we need to explicitly exclude passive-investment-manager time?

STR §469 Loophole (Material Participation)

IRC §469 · Reg §1.469-1T(e)(3)(ii)(A) · Temp. Reg §1.469-5T
Solid
Rule

Rentals with average customer use ≤ 7 days are NOT "rental activity" under §469 — they're a trade or business. If the taxpayer materially participates in that trade, losses are non-passive, and no REPS is needed. Material participation = any of 7 tests, easiest are: 500+ hrs/yr, or 100+ hrs AND more than any other individual, or "substantially all" of participation.

How RentReel implements

Per-property average stay calculated from reservation data (PMS import + Hospitable). Properties tagged STR only if avg ≤ 7 days. Runs all 7 material participation tests per property + shows PASS/FAIL for each. Tracks "Other Participants" (cleaner, contractor, co-host) auto-detected from bank/Turno data with total hours per participant. Aggregate Election toggle available for portfolio-wide test.

Ask you: Are all 7 tests worth surfacing or should we simplify to the 3 most-commonly-cited? Also — the ≤7-day test uses AVERAGE stay across the year; are we OK to include Airbnb 30+ night bookings in the average, or should we exclude them to be conservative? IRS Pub 925 is ambiguous here.

Aggregation Election under §469

IRC §469(g)(1) · Reg §1.469-9(g)
Documented
Rule

REPS-qualified taxpayers may elect to aggregate all rental activities as a single activity for material participation testing. Once elected, it's binding for all future years until formally revoked with IRS consent (revenue procedure).

How RentReel implements

Toggle in Loophole Tracker → aggregate mode sums hours across all properties into a single 500-hr test. Shows the largest single Other Participant's total across all properties (correct denominator for the "more than any other" test). Currently DOES NOT auto-generate the §469(g) election statement — user must file it separately with their return.

Ask you: Should we auto-generate a §469(g) election statement PDF when the user toggles aggregate mode? Also — do you counsel clients to aggregate STR-only or ALL rentals? We currently treat it as a single toggle.

Cost Segregation + Bonus Depreciation

IRC §168 · Rev. Proc. 87-56 · §168(k) bonus phase-down
Estimator
Rule

Cost segregation studies reclassify components of a building from 27.5-year (residential rental) or 39-year (commercial) property to 5-year, 7-year, and 15-year property. Combined with bonus depreciation under §168(k), a portion of the building's cost can be deducted in Year 1. 2026 bonus rate: 60% (phase-down from 100%).

How RentReel implements

Cost Seg Estimator only (not an actual study). User enters cost basis; we assume ~25% reclassified to short-life property (industry rule-of-thumb from CSSI/Madison SPECS studies), apply 60% bonus depr Year 1 to that portion, show projected Year 1 write-off + federal tax savings at user's marginal rate (default 32%). Explicitly labeled "Estimator — real study required for filing." Referral hooks to Madison SPECS / Cost Seg Authority planned.

Ask you: Is 25% reclassification a reasonable industry default, or should we drop it to 20% to be more conservative? Also — should we show Year 2-5 depreciation on the reclassified components (5-yr MACRS half-year convention)? Currently we only show Year 1 impact.

Building Depreciation (Straight-Line 27.5)

IRC §168(c) · Rev. Proc. 87-56 (Res. Rental)
Not yet computed
Rule

Residential rental buildings depreciate over 27.5 years straight-line, mid-month convention, on the depreciable basis (cost minus land value). Commercial: 39 years. Reported on Form 4562 and Schedule E Line 18.

How RentReel implements

User enters property value, cost basis, and land value in Properties Hub. Portfolio Net Worth calculation uses these. We DO NOT currently auto-compute Schedule E Line 18 depreciation — user (or CPA) must compute it externally and enter as a manual expense line. This is a documented gap. Amortization schedule for mortgage split IS computed (declining balance) for the Line 12 interest portion.

Ask you: If we auto-compute Line 18 straight-line depreciation from acquisition date + cost basis + land %, would you trust that number in a client's Schedule E prep, or do you always want to see it come from Form 4562 in your workpapers? We're deciding whether to add it or leave it manual.

Schedule E Line 12 — Mortgage Interest

Sched E Instructions · Form 1098 · IRS Pub 527
Solid
Rule

Only the interest portion of a mortgage payment is deductible on Schedule E Line 12. Principal is not deductible. Servicer-issued Form 1098 is the tax-authoritative document. Escrow held on behalf of the taxpayer for property tax/insurance flows through to Lines 9 and 16 when disbursed.

How RentReel implements

If user uploads Form 1098 PDF, Claude vision extracts the interest paid amount + property tax + points + escrow → those numbers populate Line 12, 16, 9. If no 1098, we fall back to a declining-balance amortization ESTIMATE using entered mortgage balance × rate ÷ 12 per payment. Every property with an amortization estimate shows a yellow "Estimate only — reconcile with 1098 at year-end" callout.

Ask you: The 1098 auto-extract confidence for well-scanned PDFs is high — we've tested Selene Finance, Newrez, Shellpoint, Rocket, JPMC, PennyMac. Are there other servicers you see often that we should proactively test? Also — some 1098s report a "prior year" 1098 correction; how do you want that surfaced?

Vehicle Mileage (Standard Rate)

IRC §162 · Rev. Proc. (annual rate) · IRS Pub 463
Solid
Rule

Business use of vehicle deductible via standard mileage rate (67¢/mi for 2024, adjusts annually) OR actual expenses. Drives must be documented contemporaneously with date, purpose, destination, mileage. Reported on Schedule E Line 6.

How RentReel implements

Generic mileage parser accepts CSVs from MileIQ, Everlance, Stride, Hurdlr, and Excel logs. Each drive is auto-attributed to a property using the drive destination address matched against the property's city/state/street. Drives without a matched property remain unassigned for user review. Rate is user-configurable (default 67¢). Total business miles × rate = Line 6 amount.

Ask you: Should we surface both standard-rate AND actual-expense methods and let the user pick the higher deduction, or is that promoting sub-optimal filing? Standard rate is safe + simple; actual expenses (gas, maintenance, insurance × business use %) can be higher but requires more record-keeping.

Section 199A QBI Deduction (Rental Real Estate)

IRC §199A · Rev. Proc. 2019-38 (safe harbor)
Not implemented
Rule

Rental real estate can qualify for the 20% QBI deduction if it rises to the level of a §162 trade or business. Rev. Proc. 2019-38 provides a safe harbor: 250+ hours of rental services per year on the enterprise + separate books + contemporaneous records. STRs that qualify as §469 trade/business via ≤7-day avg stay generally also qualify.

How RentReel implements

Not yet. This is a known feature-request gap. We track hours + separate books per property already, so building a QBI-safe-harbor eligibility indicator is straightforward — we just haven't shipped it.

Ask you: Priority — is this worth building before public launch? Our sense is YES for the STR use case (hits the 250-hr safe harbor easily) but medium priority for pure LTR. Do you routinely take QBI on your STR-heavy clients?

Home Office Deduction (Simplified or Actual)

IRC §280A · Rev. Proc. 2013-13 (simplified)
Not implemented
Rule

Home office regularly + exclusively used for managing rentals qualifies for a deduction. Simplified: $5/sq ft up to 300 sq ft ($1,500 max). Actual: percentage of home expenses (utilities, insurance, depreciation). Sched E generally doesn't allow home office — reported instead on Sched A or Form 8829 depending on trade/business status.

How RentReel implements

Not implemented. Would need a "home office" section in Properties (or Settings) capturing square footage + method. Complexity: routing to correct form depends on whether the rental activity is a trade or business (Sched C-like) or pure rental (Sched E — no home office allowed directly).

Ask you: Do you deduct home office for STR-operator clients even though the rental income flows to Sched E? Some CPAs treat STR management as a Sched C-eligible trade; others keep everything on Sched E. What's your standard practice?

Augusta Rule (§280A(g) — 14-day rental exclusion)

IRC §280A(g)
Not implemented
Rule

Personal residence rented for ≤14 days/year generates tax-free rental income — no reporting required. Common play: business rents owner's home for board meetings at market rate. Requires market-rate documentation + genuine business purpose.

How RentReel implements

Not implemented. Could add a "Personal Residence — Augusta Rule tracker" that tracks rental days on user's primary home + flags when approaching 14-day threshold + reminds them to invoice their LLC at market rate.

Ask you: Would this be a valuable Pro+ Tax feature or too niche? Also — the "reasonable market rate" documentation is where clients get in trouble. Would you want RentReel to auto-generate a market-rate comparable report from local hotel/venue pricing?
Schedule E Line Mapping

Every dollar has a line

Auto-categorization rules for common expenses. Users can override any transaction. New payees learn from a single manual categorization (payee-to-category rule stored per user).

Sched E Category How we detect Example vendors
Line 3Rents ReceivedPMS reservations · direct bookings · platform payouts (GROSS, not net)Hospitable · Airbnb · Vrbo · Booking
Line 6Auto + TravelMileage CSV × standard rate + airline / rideshare / rental car / hotel / gas / parkingMileIQ · Delta · Uber · Hertz · Marriott
Line 9InsuranceInsurance-vendor regex + escrow-disbursed portion of 1098 extractNationwide · Foremost · TranSource
Line 10CleaningTurno reservations + venmo/manual cleaners tagged via learn-ruleTurno · Derksen Property · Venmo-to-cleaner
Line 11ManagementPMS fees · dynamic-pricing · analytics · AI · HOA · platform host service fees (auto-split from gross)Hospitable · PriceLabs · Beyond · HOA
Line 12Mortgage InterestForm 1098 (auto-extract via Claude vision) — else declining-balance amortization estimateSelene · Newrez · Shellpoint · Rocket · JPMC
Line 13Other Interest + ProfessionalBusiness card interest charges · title/escrow/closing servicesAmex APR · First American Title · Old Republic
Line 14RepairsContractor keywords · home-improvement retailers · trade descriptorsHome Depot · Lowe's · Plumbing · HVAC · Roofing
Line 15SuppliesManual entry (fallback for uncategorized supplies)User-tagged supplies
Line 16TaxesProperty tax escrow (1098) · occupancy/transient/lodging tax · LLC annual filingsCounty tax · TOT · Sunbiz · Sec of State
Line 17UtilitiesUtility-vendor regex (electric, gas, water, internet)FPL · Spectrum · Columbia Gas · Water Dept
Line 18DepreciationNOT auto-computed — user or CPA enters manuallyManual
Line 19Other ExpensesMeals (50%) · Software subs · Anything not caught by other rulesDoorDash · Adobe · Google Workspace
Ask you: Any lines misclassified above? Common CPA disagreements: (1) Occupancy tax on Line 16 vs Line 11 (some argue it's a management/pass-through cost). (2) Cleaning fees CHARGED to guests — do you net them against Line 3, or gross-up rev + book cleaning on Line 10? (3) Solar loan interest — Line 12 (mortgage) or Line 13 (other)?
Transparency

Known gaps we're not hiding

Rules we don't handle (yet), or where we defer to CPA judgment. Would love your priority ranking.

Schedule E Line 18 · Building depreciation auto-compute §168(c)

User enters property value + land basis but we don't yet auto-compute 27.5-yr SL depreciation on the Schedule E. Left as a manual line for CPA review. Should we ship this?

Section 199A QBI deduction eligibility §199A · Rev. Proc. 2019-38

We track hours + separate books per property (both safe-harbor requirements). Building an "eligible for QBI safe harbor" flag would be one screen. Priority?

Passive Activity Loss (PAL) carryforward tracking §469(b)

When a client's rental produces a passive loss they can't use this year (below REPS + non-material-participant), that loss carries forward until they have passive income or dispose of the activity. We don't track PAL carryforwards. Currently users rely on their CPA's workpapers.

Section 1031 like-kind exchange tracking §1031

Deferred gain tracking, basis adjustments across chain of exchanges. Complex, likely CPA-driven. We could store the exchange metadata but not compute it. Worth building?

At-risk rules §465

Recourse vs non-recourse financing distinction, guarantor exposure. We don't compute at-risk basis. Rarely surfaces for STR operators but relevant for syndications.

Augusta Rule (§280A(g)) — 14-day personal residence rental

Not implemented. Would be a Pro+ Tax feature: track personal residence rental days + auto-invoice LLC at market rate + generate market comps.

Bonus depreciation phase-down forecasting §168(k)

We use the current-year bonus rate (60% for 2026) in the Cost Seg Estimator. We don't forecast the phase-down (60% → 40% → 20% → 0% by 2027). Should we show a "if you defer 1 year, you lose $X" forecast?

Meeting

Suggested 30-min flow

If you want to make efficient use of Jordan's meeting time.

1
3 min

Elevator + context

Jordan explains what RentReel is and who it's for. Ask: "What's your first reaction to the target user?"

2
7 min

Live demo — client side

Open app.rentreel.co/?demo=1. Walk through Properties (5 STRs) → Schedule E export → Loophole Tracker → Cost Seg Estimator. Focus on the AI 1098 auto-extract if time.

3
15 min

Rule-by-rule review

Walk this page's "Tax rules we implement" section. For each rule, CPA gives a thumbs up / thumbs down / "let me think about it." Capture every "Ask you" answer in notes.

4
3 min

Prioritize gaps

Show "Known gaps" section. Ask: "For your typical STR-heavy client, rank these — must-have, nice-to-have, don't-care." That's the roadmap.

5
2 min

Partnership pitch

Formalize the CPA partnership — CPAREVIEW code for free Pro+ Tax, $50/paid signup + $10/mo recurring for referred clients (client rate: $49/mo), "Send to my CPA" button pre-fills their email on Schedule E exports. Full offer at rentreel.co/cpa-partners.

🎁 The offer for CPAs

Personalized promo code (e.g. HOGAN) — your clients lock in $49/mo (public $89). You earn $50 upfront per paid signup + $10/mo recurring commission forever. Free lifetime Pro+ Tax account for yourself. "Send to my CPA" button pre-fills your email on Schedule E exports. First 15 CPA partners get founding-member testimonial placement on rentreel.co. Full offer: rentreel.co/cpa-partners