Track Your STR Hours. Qualify for the Tax Loophole. Keep Your Deductions.

If you can't document your material participation, the IRS can deny your losses — even if your strategy is valid.

Works in Excel, Google Sheets, or Numbers. Other tools charge $99/year — this is free.

Download the Free Template

Why This Matters

Without a time log

  • Losses may be disallowed
  • Hard to reconstruct hours after the fact
  • Increased audit risk

With a time log

  • Track hours in real time
  • Show qualification clearly
  • Defend your position if questioned
For many STR owners, qualifying means the difference between carrying losses forward for years — or using $20K–$60K+ in deductions this year.

What You Get

Activity log with 7 IRS-relevant categories

Guest communication, maintenance, pricing, cleaning coordination, bookkeeping, marketing, and supply runs — all pre-built.

Automatic tracking toward 100-hour and 500-hour thresholds

Running totals update as you log. No manual math, no guessing where you stand.

Contractor hours tracker (critical for Test 4 qualification)

Log hours for cleaners, co-hosts, property managers, and maintenance crews separately.

Dashboard showing "Qualified / Not Yet" status per property

At-a-glance view of where each property stands against both the 100-hour and 500-hour tests.

The Mistake Most STR Owners Make

It's not about hitting 100 hours. It's about doing more work than anyone else on the property. If your cleaner, co-host, or property manager logs more time than you — you may not qualify under Test 4.

The Contractor Hours sheet tracks everyone else's time so you always know where you stand.
The IRS expects contemporaneous records — logs created as you go, not reconstructed at tax time. This template makes that easy. Designed to match IRS material participation documentation expectations under Reg. §1.469-5T.

Download the Free Template

Once You Qualify, This Is What Unlocks the Benefit

Tracking your hours is step one. Using the losses is step two. That's where cost segregation comes in.

A typical STR cost segregation study creates $20K–$60K+ in first-year deductions — deductions that can offset your W-2 income if you qualify for material participation.

See How Much Your Property Could Generate Learn more about the STR loophole →

Frequently Asked Questions

What counts toward material participation hours?
Guest communication, pricing management, coordinating cleaners, maintenance oversight, supply shopping, bookkeeping, and marketing. Both in-person and remote time counts.
Does a spreadsheet hold up with the IRS?
Yes. The IRS does not require specific software. What matters is that records are contemporaneous (created in real time), detailed, and consistent. A well-maintained spreadsheet is sufficient.
What if I use a property manager?
Track their hours on the Contractor Hours sheet. For Test 4, you need 100+ hours AND more than any single individual. Full-service PMs often log 200+ hours per listing — making the 500-hour test more realistic.
What's the difference between the 100-hour and 500-hour tests?
Test 4 (100 hours): you need 100+ hours AND more than any other individual. Test 1 (500 hours): 500+ hours regardless of what others do. Most self-managing hosts use Test 4.

Related Resources

STR Cost Segregation Cost Seg Calculator Material Participation Guide W-2 Offset Strategy Sample Report