What is REP status for real estate investors?

Real Estate Professional (REP) status is an IRS designation that allows real estate investors to deduct rental losses against ordinary income without passive activity limitations. To qualify, you must spend more than 750 hours per year in real estate activities and more time in real estate than any other profession.

How does Nestworthy help with IRS audits?

Nestworthy creates audit-proof documentation by AI-validating every REP hour entry, cross-referencing activities with bank transactions via Plaid, generating credibility scores, and producing CPA-ready reports. Every entry is timestamped and immutable, creating a defensible record.

What is the 750-hour material participation test?

The 750-hour test is one of the IRS requirements for Real Estate Professional status. You must spend at least 750 hours per year materially participating in real estate trades or businesses. Nestworthy tracks your pace toward this threshold and flags risks in real time.

Can Nestworthy connect to my bank account?

Yes. Nestworthy uses Plaid to securely connect to over 12,000 banks. Transactions auto-import and AI matches them to your REP activities, creating corroborated evidence that strengthens your audit defense.

How does AI-validated REP tracking work?

When you log REP hours via voice or text, Nestworthy's AI categorizes the activity, assigns a credibility score from 0 to 100, detects potential backfill risks, and cross-references the entry against your bank transactions and documents for corroboration.

Is my financial data secure on Nestworthy?

Nestworthy uses bank-level security with SOC 2 compliant infrastructure. Bank connections are handled through Plaid's encrypted system, and all data is encrypted at rest and in transit. We never store your banking credentials.

Privacy Policy

Last updated: March 22, 2026

Nestworthy ("we," "us," or "our") operates the nestworthy.ai website and the Nestworthy platform (collectively, the "Service"). This Privacy Policy explains how we collect, use, disclose, and protect your information when you use our Service.

1. Information We Collect

Account Information

When you create an account, we collect your name, email address, and profile information provided through our authentication provider. You may also provide additional information such as a profile photo.

Financial Data

To provide portfolio management and tax optimization services, we collect property details, transaction records, loan information, REP hour logs, and related financial data that you enter into the platform.

Usage Data

We automatically collect information about how you interact with the Service, including pages visited, features used, browser type, IP address, and device information.

Payment Data

When you subscribe to a paid plan, payment information is collected and processed directly by Stripe. We do not store your full credit card number on our servers.

2. How We Use Your Information

Provide, operate, and maintain the Service
Generate portfolio analytics, advisor briefings, and tax optimization recommendations
Process payments and manage subscriptions
Send transactional emails, product updates, and digest notifications based on your preferences
Monitor and improve the performance and security of the Service
Comply with legal obligations, including tax reporting requirements
Respond to support requests and communicate with you

3. Data Storage and Security

Your data is stored on secure servers managed by our infrastructure providers. We employ industry-standard security measures including encryption in transit (TLS) and at rest, database access controls, and regular security audits.

While we take reasonable precautions to protect your data, no method of transmission or storage is 100% secure. We cannot guarantee absolute security of your information.

4. Third-Party Services

We use the following third-party services to operate the platform:

Clerk — Authentication, user management, and session handling
Stripe — Payment processing and subscription billing
Neon — PostgreSQL database hosting
PostHog — Product analytics (anonymized usage data)
Resend — Transactional email delivery

Each third-party service processes data in accordance with its own privacy policy. We encourage you to review those policies.

5. Data Sharing

We do not sell your personal information. We may share your data only in the following circumstances:

With third-party service providers as described above, strictly for operating the Service
When required by law, regulation, or legal process
To protect the rights, safety, or property of Nestworthy, our users, or the public
In connection with a merger, acquisition, or sale of assets (with advance notice to users)

6. Your Rights

Depending on your jurisdiction, you may have the following rights regarding your personal data:

Access — Request a copy of the personal data we hold about you
Correction — Request that we correct inaccurate data
Deletion — Request that we delete your personal data
Export — Export your data in a portable format (available in Settings)
Opt-out — Unsubscribe from marketing communications at any time

To exercise any of these rights, contact us at privacy@nestworthy.ai.

7. Cookies and Tracking

We use essential cookies to maintain your session and authentication state. We also use analytics cookies (via PostHog) to understand how the Service is used. You can manage cookie preferences through your browser settings.

8. Data Retention

We retain your data for as long as your account is active or as needed to provide the Service. Financial records may be retained for longer periods as required by tax and accounting regulations. When you request account deletion, we will remove your personal data within 30 days, except where retention is required by law.

9. Children's Privacy

The Service is not intended for individuals under the age of 18. We do not knowingly collect personal information from children.

10. Changes to This Policy

We may update this Privacy Policy from time to time. We will notify you of material changes by posting the new policy on this page and updating the "Last updated" date. Continued use of the Service after changes constitutes acceptance of the revised policy.

11. Contact Us

If you have questions about this Privacy Policy or our data practices, contact us at:

Nestworthy

Email: privacy@nestworthy.ai

Website: nestworthy.ai