A simple way to track the time you spend overseeing the equipment you own, logged as you go, in one clean place you can hand to your CPA.
This is a record-keeping tool, not tax advice, and it is not a guarantee of any tax outcome. It simply helps you keep an honest, dated log of your time.
Whether your activity meets any particular participation standard, and which standard applies to you, is determined solely by your own CPA or tax advisor based on your specific situation. Cochran Management LLC is not your tax advisor. The relevant tax position is unsettled, so confirm it in writing with your own tax counsel before relying on it.
An Excel template with a category dropdown, a few example rows to delete, and a running total that updates automatically. Make it yours and keep it wherever you keep your records.
Download the hours log (Excel)Opens in Excel, Numbers, or Google Sheets. The "Start Here" tab repeats these instructions.
These are examples of the routine oversight participants commonly log. They are illustrations, not a checklist that "qualifies" you for anything:
Everyone's situation is different, and the right amount of time is yours and your advisor's to determine. Purely as an illustration of how routine oversight accumulates over a year:
Illustrative only. A figure sometimes cited as a reference point is around 100 hours per year, but whether that or any standard applies to you, and whether you meet it, is your CPA's determination, not ours.
When tax season comes, hand the completed log to your accountant along with your other records. If it would help, I'm glad to get on a call with you and your CPA together. Reach me anytime at (206) 755-6436 or josh@ownafleet.com.