What Is a Contemporaneous Log? Why the IRS Requires It for REPS
If you're tracking hours for Real Estate Professional Status or the STR loophole, you've probably heard the term "contemporaneous log."
It sounds technical, but it's simple and critically important. Getting it wrong can cost you your entire tax deduction.
Here's what contemporaneous means, why the IRS cares, and how to make sure your logs qualify.
What Does "Contemporaneous" Mean?
Contemporaneous means "at the same time" or "during the same period."
A contemporaneous log is a record created at or near the time of the activity, not reconstructed later from memory.
Example of contemporaneous logging:
- Monday: You spend 2 hours at your rental property handling a repair
- Monday evening: You log "2 hours: coordinated plumber visit, inspected repair" in your tracking app
Example of non-contemporaneous logging:
- January through November: You work on your rentals without tracking
- December: You sit down and try to remember what you did all year
- December: You create a spreadsheet estimating 800 hours
The second example is what the IRS calls "post-hoc reconstruction," and it's a major red flag in audits.
Why the IRS Requires It
The IRS knows that people can inflate their hours after the fact. It's easy to claim 750 hours in December when you're filing taxes. It's much harder to fake a year's worth of dated, detailed entries created in real-time.
Contemporaneous logs serve two purposes:
- Accuracy: Records made at the time are more reliable than memories from months ago
- Credibility: Real-time logging shows you took REPS/STR seriously, not as a last-minute tax play
The Treasury Regulations specifically reference "any reasonable means" to prove material participation, including "contemporaneous daily time reports."
When the IRS audits REPS claims, one of the first things they examine is whether time logs were created as work was performed or fabricated later.
What Tax Court Says
Tax Court has addressed contemporaneous logging in numerous cases. Here's what they look for:
Positive factors:
- Entries dated close to when activities occurred
- Consistent logging pattern throughout the year
- Specific details (not vague descriptions)
- Corroborating evidence (receipts, emails, calendar entries)
Negative factors:
- All entries created at year-end
- Round numbers (exactly 2 hours every day)
- Vague descriptions ("worked on rental")
- No supporting documentation
Case example: Pohoski v. Commissioner (2016)
The taxpayer claimed REPS with 1,000+ hours but had no contemporaneous records. They created a log after the IRS questioned their return.
The court rejected the log, noting it was "prepared in anticipation of litigation" and lacked credibility. The taxpayer lost REPS status.
Case example: Bailey v. Commissioner (2019)
The taxpayer maintained a calendar with real estate activities noted throughout the year. Even though the log wasn't perfect, the court found it credible because entries were made consistently and corroborated by other records.
The taxpayer won.
What "Contemporaneous" Actually Requires
Here's the good news: you don't have to log every activity the minute it happens. The standard is reasonable, not perfect.
Acceptable:
- Logging at the end of each day
- Weekly batch entries (with specific dates for each activity)
- Monthly summaries with detailed breakdowns
Risky:
- Quarterly reconstructions from memory
- Year-end estimates
- Logs created only after IRS inquiry
Not acceptable:
- Creating your entire log in December
- Backdating entries
- Estimating hours without any real-time record
The IRS Audit Techniques Guide suggests that logs should be created "contemporaneously or near the time of the activity." A few days' delay is fine. A few months' delay is problematic.
What Your Log Should Include
A solid contemporaneous log includes:
- Date: When the activity occurred
- Duration: How long it took (hours and minutes)
- Activity description: What you actually did
- Property: Which property (if you have multiple)
- Category: Type of activity (maintenance, tenant relations, admin, etc.)
Good log entry:
- Date: March 15, 2025
- Property: 123 Oak Street
- Activity: Met with plumber to repair kitchen sink leak, inspected completed work
- Duration: 1 hour 45 minutes
- Category: Maintenance
Bad log entry:
- Date: March 2025
- Activity: Worked on rentals
- Duration: 15 hours
The good entry is specific, dated, and credible. The bad entry looks like a year-end guess.
How to Create Contemporaneous Logs
Option 1: Dedicated time-tracking app
Apps like REPS Time automatically timestamp your entries, creating a built-in audit trail. You can't backdate entries, which actually protects you because it proves your log is contemporaneous.
Option 2: Calendar entries
Use Google Calendar or iCal to note real estate activities. Calendar entries are timestamped by the platform, making them hard to fabricate.
At year-end, export your calendar and compile the entries into a summary log.
Option 3: Spreadsheet with discipline
A Google Sheet or Excel file works if you commit to regular updates. Add entries weekly at minimum.
Important: Google Sheets tracks edit history, which can show when entries were created. This can help (or hurt) you in an audit.
Option 4: Email yourself
Some investors email themselves a daily or weekly summary. Email timestamps serve as proof the record was created at that time.
Simple but effective.
Corroborating Evidence
Your log is stronger when supported by other records. Save:
- Receipts: Home Depot runs, contractor payments
- Bank/credit card statements: Transactions that match logged activities
- Emails and texts: Communication with tenants, contractors, property managers
- Calendar entries: Appointments, property visits
- Photos: Before/after shots of repairs, property inspections
- Mileage logs: If you track driving (supports property visits)
In an audit, the IRS may ask: "You logged 3 hours of maintenance on June 15. What evidence do you have?"
If you can produce a Lowe's receipt from June 15 and a photo of the repair, your log is bulletproof.
The Year-End Scramble Problem
Tax season creates panic. Investors suddenly realize they need to document their hours and scramble to create a log.
This is exactly what the IRS looks for, and it's why so many REPS claims fail in court.
Signs of a year-end scramble (what auditors notice):
- All entries have December dates
- Metadata shows the file was created in January
- Entries are suspiciously round (2 hours, 4 hours, never 1:45)
- No supporting documentation
- Total hours conveniently land just above 750
If your log looks like it was created the week before you filed your return, it won't hold up.
Starting Mid-Year
What if you're reading this in July and haven't been tracking?
Start now. A partial contemporaneous log is better than no log at all.
For the first half of the year, do your best to reconstruct activities using:
- Calendar appointments
- Email records
- Bank statements
- Contractor invoices
- Property management software records
Note that these entries are reconstructed, and be conservative with hours.
For the second half of the year, log contemporaneously. Future years, start in January.
The Timestamp Advantage
One benefit of using a dedicated app: automatic timestamps.
When you create an entry in REPS Time, the system records when it was created. You can't go back and add entries from six months ago without it being obvious.
This seems like a limitation, but it's actually proof. If the IRS questions your log, you can show that entries were created at or near the time of the activity.
Spreadsheets don't offer this protection. Neither do handwritten notes (unless you can prove when they were written).
Bottom Line
"Contemporaneous" isn't a magic word. It's a standard. The IRS wants to see that you tracked your hours as you worked, not as a tax-time exercise.
The standard is reasonable:
- Log regularly (daily or weekly)
- Include specific details
- Keep supporting documents
- Don't wait until year-end
If you can show a consistent pattern of real-time logging, corroborated by other records, your REPS or STR claim becomes much harder to challenge.
Create Audit-Proof Logs Automatically
REPS Time timestamps every entry automatically. Create audit-proof contemporaneous logs without the spreadsheet hassle. Start tracking →
