Savings Calculator
How much are your undocumented hours costing you?
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Adjust the slider and see your estimated tax savings in real time.
Your situation
Marginal rate: 24%
Average per property
Expenses include insurance, property tax, repairs, and management fees. Depreciation ($13,818/yr per property) is calculated automatically from property value.
Estimated annual tax savings
$7,313
from $30,473 in deductible losses at 24%
Annual hours
936
✓ Above 750 REPS threshold
Loss per property
$7,618
incl. $13,818 depreciation
Total rental loss
$30,473
4 × $7,618
RE:Writeoff cost
$108/yr
Pro plan
Return on investment
For every $1 on RE:Writeoff
68x
No credit card required · 5 minutes to first savings
How REPS & STR deductions work
Most rental property owners report rental income and expenses on Schedule E, but rental losses are typically “passive” under IRC §469 — meaning they can only offset other passive income. Two IRS provisions change that:
Real Estate Professional Status (REPS)
Under IRC §469(c)(7), if you spend 750+ hours per year in real property trades or businesses — and more time in real estate than any other occupation — your rental activities are no longer automatically passive. Losses can offset W-2 wages, business income, and other active income with no cap.
Short-Term Rental (STR) Loophole
Under Reg. §1.469-1T(e)(3)(ii), a rental with an average guest stay of 7 days or less is not treated as a rental activity at all. If you materially participate (100+ hours and more than anyone else), losses are non-passive and deductible against all income — no REPS required.
In both cases, the IRS requires contemporaneous documentation of your hours. A log created at tax time is weaker than one maintained throughout the year. That's the problem RE:Writeoff solves.
Why your profitable rental has a tax loss — a deeper look at how depreciation creates paper losses and what you can do with them.
Frequently asked questions
Does this work if I have a W-2 job?
Yes, but for REPS you must spend more time in real estate than at your W-2 job. If you work 40 hours/week at your day job, you'd need 40+ hours/week in real estate. The STR loophole has no such requirement — you just need 100+ hours and more involvement than anyone else (like a property manager).
What counts as a property management hour?
Any time spent on real property trades or businesses: tenant screening, lease negotiations, repair coordination, bookkeeping, property inspections, travel to properties, responding to tenant messages, researching vendors, reviewing insurance, managing listings, coordinating cleanings, and more. The key is that it's documented contemporaneously.
Do I need to be a real estate agent for REPS?
No. “Real estate professional” is an IRS tax classification, not a job title. Landlords, property managers, developers, and investors all qualify if they meet the hour tests. You do not need a license.
What if I don't hit 750 hours?
Without REPS, rental losses are passive. If your AGI is under $100K, you can still deduct up to $25,000 in losses. That allowance phases out between $100K and $150K. Above $150K, losses are suspended and carry forward. The STR loophole (only 100 hours required) is the alternative for short-term rental owners.
Can my spouse's hours count?
For the 750-hour REPS test, only one spouse needs to qualify — but it must be the same spouse who meets both the 750-hour and the more-than-half tests. You cannot combine hours between spouses. For material participation in individual rental activities, hours from both spouses do count. Read the full married-couples guide
Where does depreciation come from in this calculator?
Depreciation is auto-calculated from your property value: (value × 80% building ratio) ÷ 27.5 years. It's the biggest driver of paper losses on most rentals. Learn how depreciation creates tax losses
Are these savings guaranteed?
No. This calculator provides estimates based on simplified federal tax models. It does not account for state taxes, AMT, NIIT, filing status variations, or your complete tax picture. Actual savings depend on your specific situation. Always consult a qualified tax professional.
Not sure if you qualify?
The numbers above assume you meet the 750-hour threshold for REPS or the material-participation bar for STRs. If you're not sure which of those paths applies to you, see the three investor profiles RE:Writeoff was built for — most people find themselves inside one of them within a paragraph or two.
These estimates are based on simplified federal tax models. Actual results vary based on property type, expenses, filing status, and activity types. RE:Writeoff is a documentation tool and does not provide tax advice. Consult a qualified tax professional for advice specific to your situation.