Question
What documents to collect if material and active participation on a rental property is claimed?
I have had a huge loss due to the damage that a renter did to my property and some expense for general upgrade.
I am employed but my spouse was unemployed for half of the year. She managed to get the property back in shape and rent it out again.
I am planing to check the mark for active and material participation to offset some passive income I made during last year. I have the receipt for payments I made to my contractor and I paid him all in cash.
What other documents I need to collect just in case I am audited and I need to proof this participation and payments?
