Dave Quinn

[Dave Quinn @DaveQuinn76]

@MapleStax Trade

[Dave Quinn @DaveQuinn76]

@MapleStax Trade

[Matt Shumer @mattshumer_]

https://t.co/ivXRKXJvQg

[Dave Quinn @DaveQuinn76]

Annual jobs number revised down 911,000 - yikes. Current Employment Statistics Preliminary Benchmark (National) Summary - 2025 A01 Results https://t.co/SXlezceSy8

[AJ Investment Research @alojoh]

This thread is a deep dive into the government's fiscal situation based on latest data for May published yesterday.

The month of May marks month 8 of the current fiscal year. The government spent in the current fiscal year $4,846 billion.

The deficit after 8 months amounts to almost $1.4 trillion: $1,365 billion.

You can see in the chart how net interest expense ranks #3 largest spending category at $665 billion (for 8 months). Spending is only higher for social security ($1,040 billion) and Medicare ($700 billion).

The deficit is 39% of total receipts! (1,365/3,482)

In other words: the government spent 39% more than it took in.

[Brandon Hall @bhallcpa]

We’ve been helping STR investors with IRS audits recently.

But IRS agents are making illogical arguments.

Here’s what they are saying, and the citations you need to defend:

(Share with people investing in STRs)

❌ You must be a Real Estate Professional to claim STR losses

An IRS agent claimed you need to meet the two REP tests to claim STR losses.

But REP status only applies to “rental activities.”

Defense:

✅ Reg. Sec. 1.469-1T(e)(3)(ii)(A) says if rental has an avg rental period of <=7 days, it’s not a rental activity

❌ You should have reported your STR on Sch C, not Sch E

An IRS agent claimed if you don’t have a “rental activity” then you must report on Sch C where the STR is now subject to SE taxes.

Defense:

✅ Sec. 1402(a)(1) says rental income is excluded from SE taxes unless you are a real estate “dealer”

✅ CCA202151005 - “whether an activity is a “rental activity” under § 469(c)(2) is not determinative of whether the exclusion in § 1402(a)(1) applies.”

❌ Material participation - to hit 500 hours you or spouse must do that alone

An IRS agent claimed that in order to materially participate, you or spouse must work 500 hours in the STR and you cannot combine hours.

Defense:

✅ Reg. Sec. 1.469-5T(a)(1) - the actual 500 hour test

✅ Reg. Sec. 1.469-5T(f)(3) - “any participation of such person’s spouse … shall be treated … as participation of such person”

✅ Sec. 469 - “In determining whether a taxpayer materially participates, the participation of the spouse of the taxpayer shall be taken into account.”

❌ Material participation - if you use the “100 hour and more than anyone else test” you have to outwork your spouse.

An IRS agent claimed that if you use the 100 hour test you have to outwork “every other individual, including your spouse” which is a poor interpretation of the Code.

Defense:

✅ Reg. Sec. 1.469-5T(a)(1) - the actual 500 hour test

✅ Reg. Sec. 1.469-5T(f)(3) - “any participation of such person’s spouse … shall be treated … as participation of such person”

✅ Sec. 469 - “In determining whether a taxpayer materially participates, the participation of the spouse of the taxpayer shall be taken into account.”

SUMMARY:

It has been interesting seeing these audits and the claims put forth by the IRS.

The citations in this post seem to work and make problems go away.

But I think the STR strategy is so “new” to the IRS that agents are unsure how to navigate the Code and Regs.

And that means some STR investors who wait too long to get competent tax consulting will be going to Tax Court to win their audits (unfortunately).

If you are going through an STR audit, my firm would love to help.

Send me a DM!

[Brandon Hall @bhallcpa]

You are at the beach and want a beer.

Local ordinances allow for only one beer vendor on the beach.

Turns out, a lot of beach goers also want a beer.

The line is long.

The price was $20 a beer but seeing the long line, the beer vendor raises the price to $25 a beer.

People get mad.

They shout “you’re price gouging us!”

But as fate would have it,

You are a local politician.

You can solve this problem.

Do you:

(1) give everyone in line, and anyone else who wants a beer, $15

(2) blame the beer vendor for price gouging and withholding the supply of beer on a hot summer day

(3) change local ordinances to allow more beer vendors on the beach

[Alex Banks @thealexbanks]

ChatGPT is all the rave.

But what does GPT actually mean?

Here’s a quick breakdown so you don’t get left behind:

[Tom Brady @TomBrady]

Truly grateful on this day. Thank you 🙏🏻❤️

[Dave Quinn @DaveQuinn76]

Positive news for #morgage #rates and #inflation? Well worth a listen. https://t.co/klDGxpgTlm

[Dave Quinn @DaveQuinn76]

@Adamoption Incredible. Congrats Adam!

[Dave Quinn @DaveQuinn76]

#tobacco harvest in northern CT. Like stepping back in time.

[TT3 @TradingThomas3]

$SPY where are we at 👀, guessing popular opinion will be return to normal.

[Dave Quinn @DaveQuinn76]

@HarryWangEra Bear put spread on spy.

[The Associated Press @AP]

Tom Brady will join Fox Sports as its lead football analyst once his playing career ends, the network said. When that actually happens is unclear, because Brady recently changed his mind about retiring and plans to continue playing for the Buccaneers. https://t.co/sjfFgVDpcL

[Dave Quinn @DaveQuinn76]

@STXRBOY999 How do you scan for trade ideas?

[Dave Quinn @DaveQuinn76]

@SherriBoatQueen Nice! Got some of this move too, but got out waaay to soon.

[Joe Biden @JoeBiden]

Today, I'm authorizing the release of 1 million barrels of oil per day for the next six months—over 180 million barrels—from the Strategic Petroleum Reserve. This is a wartime bridge to increase oil supply until production ramps up later this year.

[Chris Perruna @cperruna]

1990: Below, recession follows.

2000: Below, recession follows.

2007: Below, recession follows.

2022: Will it go below???