Compass CPA, PC

Compass CPA, PC Strategic tax planning, cost segregation, R&D tax credits, and virtual accounting & CFO services for growth-stage businesses and property owners.

We help you reduce tax, improve cash flow, and make smarter financial decisions without the complexity.

Would the IRS count the hours you're logging for your short-term rental?Some day-to-day tasks generally count toward mat...
09/23/2026

Would the IRS count the hours you're logging for your short-term rental?

Some day-to-day tasks generally count toward material participation. Others—even if they're related to real estate—typically don't.

This carousel walks through common activities so you can better understand what may support your tax position.

Swipe through and test your knowledge. 👉

Read the full article in the comments.

🏡 Two Airbnb owners each spend 150 hours on their properties.One qualifies for material participation.The other doesn't....
09/21/2026

🏡 Two Airbnb owners each spend 150 hours on their properties.

One qualifies for material participation.

The other doesn't.

What made the difference?

It wasn't the number of hours.

It was how those hours were spent.

The IRS distinguishes between qualifying operational work and activities that generally don't count.

Understanding that difference can have a significant impact on your tax position.

Our latest blog explains:

✔️ Which STR activities generally qualify

✔️ Which ones don't

✔️ Common mistakes owners make

✔️ Tips for keeping stronger records throughout the year

👉 Read the full guide: https://tinyurl.com/3f5yf7r7

Earning REPS isn't about being busy.It's about spending your time on the right activities.Some tasks move you closer to ...
09/16/2026

Earning REPS isn't about being busy.

It's about spending your time on the right activities.

Some tasks move you closer to qualifying. Others—even if they're related to real estate—generally won't count.

Swipe through for a simple breakdown of qualifying vs. non-qualifying activities and why keeping good records matters. 👉

Read the full article in the comments.

🏘️ Think every hour you spend on real estate counts toward REPS?Not necessarily.The IRS has specific rules about which a...
09/14/2026

🏘️ Think every hour you spend on real estate counts toward REPS?

Not necessarily.

The IRS has specific rules about which activities qualify—and getting them wrong could put valuable tax deductions at risk.

Our latest blog covers:

✔️ Activities that generally count toward the 750-hour requirement

✔️ Activities that typically don't qualify

✔️ Common REPS mistakes to avoid

✔️ Tips for documenting your time throughout the year

Knowing the difference can help strengthen your REPS position and support your tax strategy.

👉 Read the full blog: https://tinyurl.com/mrxpcb9u

Selling a business doesn't always have to be an asset sale vs. stock sale debate.There are hybrid structures that can he...
09/09/2026

Selling a business doesn't always have to be an asset sale vs. stock sale debate.

There are hybrid structures that can help align the interests of both buyers and sellers, potentially creating tax advantages while keeping the transaction moving.

This carousel explains:

✅ Section 338(h)(10)

✅ Section 336(e)

✅ Split deals

✅ Rollover equity

Swipe through to see how these structures work. 👉

Read the full article in the comments.

🤝 Selling a business doesn't have to be an all-or-nothing choice.Traditional stock sales and asset sales each come with ...
09/07/2026

🤝 Selling a business doesn't have to be an all-or-nothing choice.

Traditional stock sales and asset sales each come with trade-offs—but a hybrid structure may help balance the needs of both buyers and sellers.

Our latest blog explains:

✔️ What a hybrid stock & asset sale is

✔️ How it can benefit both parties

✔️ Common hybrid structures

✔️ When this approach may make sense

If you're planning to buy or sell a business, understanding your options could lead to a better outcome.

👉 Read the full blog: https://tinyurl.com/3c7ee72y

I've seen business owners spend months negotiating the purchase price.....only to find out the biggest financial differe...
09/02/2026

I've seen business owners spend months negotiating the purchase price...
..only to find out the biggest financial difference came from how the deal was structured.

Two deals can have the exact same purchase price but produce very different tax outcomes for both the buyer and the seller.

That's why I put together this carousel.

It breaks down the difference between a stock sale and an asset sale, why each matters, and how the right structure can affect taxes, future deductions, and liability long after closing.

Swipe through the carousel, then check out the full article using the link in the first comment for a real $5 million example.

If you were selling your business tomorrow, would you know which deal structure benefits you most?

Selling a business someday or buying one now?The structure of the deal can matter just as much as the purchase price.An ...
08/31/2026

Selling a business someday or buying one now?

The structure of the deal can matter just as much as the purchase price.

An asset sale and a stock sale can produce very different tax outcomes for both buyers and sellers, even when the offer is exactly the same.

That's why understanding your options before negotiations begin can make a significant difference.

We break down the key differences, including the updated QSBS rules that create new planning opportunities for qualifying business owners.

Read the full blog through the link in the first comment.

What questions do you have about buying or selling a business?

Quick gut check for anyone using REPS or the STR strategy: are your hours coming from real operational work, or from thi...
08/26/2026

Quick gut check for anyone using REPS or the STR strategy: are your hours coming from real operational work, or from things like reading reports and taking courses?

One of those counts toward material participation. The other doesn't, no matter how many hours you log.

Swipe through for what actually qualifies. 👉

Most real estate investors think hitting their hour requirement is the finish line for REPS or the STR loophole. It's no...
08/24/2026

Most real estate investors think hitting their hour requirement is the finish line for REPS or the STR loophole. It's not even close.

I've reviewed too many participation logs that had the hours right and the activities wrong. Reading a report from your property manager isn't material participation. Taking a real estate course isn't either. The IRS cares about what you actually did, not just how much time you logged doing it.

If you're claiming REPS or using the short-term rental strategy, there's a real chance part of your documentation wouldn't hold up if it got a second look.

I broke down exactly which activities count, which ones don't, and how to track them the right way. Worth ten minutes before your next filing.

👉 Read the full article here: https://tinyurl.com/5cz6k62b

What's your biggest headache with tracking hours? Drop it below.

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