REPS 750-Hour Test – Do STR Hours Count?

Hi everyone,

Looking for some guidance on REPS qualification.

Background: I have 3 STRs and one LTR (3-unit MF owned 50/50 with a partner). The LTR was placed in service in 2025 and we used standard MACRS depreciation since I did not qualify for REPS in 2025. I’m considering a cost seg in 2026 if I qualify for REPS.

Question: Can hours spent actively managing/operating my 3 STRs count toward the 750-hour REPS requirement, along with hours from the LTR?

I understand that STRs with an average guest stay of 7 days or less are generally not considered “rental activities” under §469, and they can potentially be nonpassive through material participation without REPS.

Does that mean those STR hours cannot count toward the 750-hour REPS test, or can STR + LTR real estate hours be combined for purposes of qualifying for REPS?

Would appreciate thoughts from anyone who has dealt with this.

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REPS 750-Hour Test – Do STR Hours Count?