Disclaimer: Valzotra does not provide tax, legal, or accounting advice. The information in this article is for educational purposes only and is not a substitute for professional guidance. Consult a qualified tax professional before making decisions based on your specific situation.

Overview

Valzotra helps you organize the records you need to support tax positions common to short-term rental businesses — including a Real Estate Professional Status (REPS) claim and material participation documentation. The platform does not prepare your tax return or tell you what to claim. It gives you a structured, timestamped record of the work you do, the money you spend, and the revenue you earn so that you and your tax advisor have the documentation the IRS expects.

How it works

  1. You log your day-to-day activity in Valzotra — work hours, expenses, mileage, and revenue — as it happens.
  2. Each entry is timestamped and tied to a specific property, creating a contemporaneous record that the IRS values more highly than records reconstructed after the fact.
  3. At any time, you can review your running totals on the Today dashboard to see where you stand against key thresholds like the 750-hour REPS requirement or the 500-hour material participation test.
  4. When you need to share records with your CPA or respond to an IRS inquiry, you export your data as structured reports filtered by date range and property.

Valzotra ties together four record types that the IRS looks for in a rental activity audit:

  • Work logs — Hours spent on property management tasks, categorized by activity type.
  • Expenses — Costs associated with each property, categorized and receipt-attached.
  • Mileage — Trips to and from your properties with origin, destination, and purpose.
  • Revenue — Gross rental income by property and date range.

Limits & requirements

  • Compliance features (work logs, expenses, mileage, revenue tracking) are available on all paid plans.
  • The Comply ($19/mo) and Host ($34/mo) plans support one property. The Portfolio plan ($49/mo) supports two or more properties and includes cross-property reporting.
  • Exports are available on all paid plans.
  • Valzotra stores your records but does not validate whether they meet any specific IRS threshold. That determination is between you and your tax professional.

FAQ

Does Valzotra file my taxes? No. Valzotra is a record-keeping tool. It organizes your data so you and your CPA can make informed decisions at tax time.

Is Valzotra a substitute for a tax advisor? No. A qualified tax professional who understands real estate taxation should review your specific situation. Valzotra gives that professional clean, organized records to work with.

What makes a "contemporaneous" record? A contemporaneous record is one created at or near the time the activity occurred. The IRS considers these more reliable than logs assembled weeks or months later. Valzotra timestamps every entry automatically when you create it.

Do I need a specific plan for compliance features? No. Core compliance features are available on all plans, including Comply ($19/mo). Portfolio ($49/mo) adds multi-property support, which is useful if you need to aggregate hours across properties for REPS qualification.

What if I get audited? Valzotra's exports produce the kind of organized, date-stamped documentation the IRS expects during an examination. Share your exports with your tax professional and follow their guidance.