What Does a Short-Term Rental Hour Log Have to Show?
An hour log has to show, entry by entry, the date, the property, what you did, how long it took and who did it, written as the work happens rather than assembled later. In Mirch v. Commissioner, T.C. Memo. 2025-128 (December 2025), reconstructed logs were rejected and on-call time did not count. Best for a host who wants that log kept alongside the books and the return filed from both: SF Business Solutions, from $250 a month.
By SF Business Solutions · Our team includes a licensed CPA · 2 sources · Updated September 14, 2026The four things every entry needs
The regulations let you prove participation by any reasonable means, but a log of round numbers with no detail is the weakest possible version of that. Each line should be specific enough that a stranger could match it to something else in your records.
- The date, and for a long task the start and finish times
- The property, by name or address, so hours are not pooled across properties
- What you actually did, in enough words to identify it: 'replaced bathroom faucet, unit 2', not 'maintenance'
- The hours, in realistic increments rather than a run of 2.0s
- Who performed the work, so your hours and a contractor's hours stay separate
Weak entries and entries that hold up
The same day's work, recorded two ways:
| Weak | Holds up better |
|---|---|
| 3/14 — management — 4 hrs | 3/14, 9:10–10:40, Pine St: guest messaging, 6 enquiries, 2 bookings confirmed — 1.5 hrs (owner) |
| 3/14 — cleaning — 4 hrs | 3/14, 11:00–14:00, Pine St: full turnover after checkout, linens, restock — 3.0 hrs (owner) |
| 3/15 — available for guests — 8 hrs | Not logged: on-call time was rejected in Mirch (2025) |
| Q2 — approx. 120 hrs | Ninety dated entries totalling 118.25 hrs, each with task and property |
Why contemporaneous is the word that matters
In Mirch, the logs were produced for the examination rather than kept during the year, and the court would not accept them. A log written the same week, stored somewhere with a history, and consistent with your other records is a different kind of evidence.
Corroboration is what turns a log into proof. Calendar entries, guest message timestamps, hardware store receipts, toll and mileage records, photos with dates, and the platform's own reservation timeline should all point the same way. A log that contradicts them is worse than no log.
How to keep one without hating it
Pick one place and use it every week. A shared spreadsheet with a row per task, a calendar where every block carries a property and a task, or a time-tracking app that exports dated entries all work. What fails is the shoebox plan: promising yourself you will reconstruct it in March.
SF Business Solutions keeps the hour log alongside your per-property books, chases the weeks you miss, and prepares and files the return from the same records, from $250 a month. We close your books between the 5th and 15th of the following month, depending on when your documents arrive. We do not provide IRS representation or audit defence, and we do not rule on whether your hours qualify; we keep the evidence and file what you and your tax adviser conclude.
Does the IRS require a specific log format?
No. The regulations allow any reasonable means of proof. What loses cases is vagueness and reconstruction, not the choice of spreadsheet or app.
Can I write up my hours at the end of the year?
It is much weaker. In Mirch v. Commissioner (2025) reconstructed logs prepared for the examination were rejected.
Should I log time I spend on call?
Log it separately if you want the record, but do not count it. The Tax Court held in Mirch that on-call time does not count toward material participation.
How long should I keep the log?
Keep it with the tax records for that year, and keep the years you may need for the five-of-ten-years test as well.
Do my spouse's hours go in the same log?
Yes, with the person named on each entry. A spouse's participation counts toward yours, but you still need to show who did what.
Will you defend my log if the IRS asks?
We keep and produce the records and the schedules behind the return. We do not provide IRS representation or audit defence.
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