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-ready 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 enterprise-grade security 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.

Terms of Service | Nestworthy

Beta Program Notice

Nestworthy is currently in a closed beta testing phase. By accessing or using this Service during the beta period, you acknowledge and agree to the following:

No Guarantee of Data Preservation. Your data, including property records, REP activity logs, transaction history, advisor briefings, and other information entered into the platform, may be deleted, lost, or rendered unavailable at any time without prior notice. We make no representations regarding the durability or recoverability of data stored during beta.
Service Availability. The Service may experience downtime, interruptions, or errors. Features may be added, modified, or removed without notice. The beta version does not represent the final product.
No Reliance. During the beta period, Nestworthy may modify, delete, or reset user data without prior notice as we improve the platform. You should not rely on Nestworthy as your sole record-keeping system for tax, legal, financial, or compliance purposes. Maintain independent copies of all important records.
Limitation of Liability. To the maximum extent permitted by law, Nestworthy shall not be liable for any damages arising from data loss, service interruption, or any other aspect of your use of the beta Service.
Feedback. Any feedback or suggestions you provide may be used by Nestworthy without obligation of compensation or attribution.
Transition to General Availability. When the Service transitions from beta, your account and data may or may not be migrated. We will make reasonable efforts to notify beta users of migration plans.

By continuing to use the Service, you acknowledge that you have read and agreed to this Beta Program Notice.

Acceptance of Terms

By accessing or using the Nestworthy platform at nestworthy.ai (the "Service"), you agree to be bound by these Terms of Service ("Terms"), including the Beta Program Notice above. If you do not agree to these Terms, do not use the Service. We may update these Terms at any time, and your continued use of the Service constitutes acceptance of any changes.

Description of Service

Nestworthy is a financial management platform designed for real estate investors. The Service provides portfolio tracking, Real Estate Professional (REP) status tracking, advisor briefing generation, acquisition analysis, transaction management, and related tools.

The Service is intended for informational and organizational purposes only. Nestworthy does not provide tax, legal, or investment advice. You should consult qualified professionals for any tax, legal, or financial decisions.

AI Limitations

Nestworthy uses artificial intelligence to categorize transactions, estimate values, analyze deals, and generate reports. AI outputs are estimates and may contain errors, omissions, or inaccuracies. You should independently verify all AI-generated information before relying on it for any purpose.

Nestworthy's AI credibility scores, deal grades, rent estimates, and tax calculations are informational tools — not professional opinions.

No Tax, Legal, or Investment Advice

Nestworthy is a software tool that organizes your data and generates reports. Nestworthy does not prepare tax returns, file documents with the IRS, provide legal advice, or make investment recommendations. Schedule E reports, tax savings estimates, deal analysis grades, and rent estimates are for informational and organizational purposes only.

You must consult a licensed CPA, attorney, or financial advisor before making tax, legal, or investment decisions. Nestworthy is not a registered investment advisor, tax preparer, or legal service provider.

User Accounts

You must create an account to use the Service. You are responsible for maintaining the confidentiality of your account credentials and for all activities that occur under your account. You agree to:

Provide accurate and complete registration information
Keep your account credentials secure
Notify us immediately of any unauthorized access to your account
Not share your account or allow others to access the Service through your account

We reserve the right to suspend or terminate accounts that violate these Terms or engage in fraudulent or abusive behavior.

Subscriptions & Billing

Nestworthy offers both free and paid subscription plans. Paid plans are billed monthly or annually as selected at the time of purchase.

Payments are processed securely through Stripe. By subscribing, you authorize recurring charges to your payment method.
Subscriptions renew automatically unless cancelled before the end of the current billing period.
You may cancel at any time through your account settings. Cancellation takes effect at the end of the current billing cycle.
Refunds are handled case-by-case. Contact support@nestworthy.ai for refund requests.

We reserve the right to modify pricing with 30 days' notice. Price changes will not affect current billing periods.

Third-Party Payment Processing

Rent payments processed through Nestworthy are handled entirely by Stripe, Inc., a licensed payment processor. Nestworthy does not hold, transmit, or control tenant funds at any point. All payment processing is subject to Stripe's terms of service and privacy policy.

Nestworthy is not a money transmitter, payment processor, or financial institution.

Third-Party Data Integrations

Nestworthy integrates with third-party services including Plaid (bank data), Stripe (payments), QuickBooks Online (accounting), Rentcast (market data), and others. Data accuracy depends on these third-party providers. Nestworthy is not responsible for errors, delays, or inaccuracies in data provided by third-party services.

Your use of these integrations is also subject to each provider's terms of service and privacy policy.

1099 Tracking

Nestworthy tracks contractor payments and helps identify contractors who may require 1099-NEC forms. Nestworthy does not generate, file, or submit 1099 forms to the IRS or to contractors.

You are responsible for consulting your CPA and complying with all IRS reporting requirements.

AI Data Processing & Training

Nestworthy uses AI to categorize transactions, analyze deals, estimate rents, and generate reports. All AI processing is performed solely for your account and to provide the Service.

We will only use your data for model improvement if you explicitly opt in via Settings. You can change this preference at any time. Opting out does not affect your use of the platform. When opted in, only anonymized, aggregated patterns are used — no personal information, property addresses, financial details, or identifiable data is ever included in training data.

Nestworthy does not sell, share, or provide your data to third parties for their own model training purposes.

Document Uploads

When you upload documents (mortgage statements, receipts, contracts, tax forms), Nestworthy processes them using AI to extract information. Uploaded documents are stored encrypted and retained for the duration of your account.

Upon account cancellation, uploaded documents are deleted within 30 days. Nestworthy does not share uploaded documents with third parties except as necessary to provide the service (e.g., AI processing).

Subject-To (Sub2) Deals Disclaimer

Nestworthy's deal calculators include analysis for Subject-To transactions, which involve assuming existing mortgage debt without lender consent. These transactions carry significant legal risks including due-on-sale clause enforcement.

Nestworthy's Sub2 calculator is for educational analysis only. Consult a real estate attorney before entering any Subject-To transaction.

Acceptable Use

You agree not to:

Use the Service for any unlawful purpose or in violation of applicable laws
Attempt to gain unauthorized access to the Service or its related systems
Reverse-engineer, decompile, or disassemble any part of the Service
Use automated systems (bots, scrapers) to access the Service without written permission
Upload malicious content or interfere with the operation of the Service
Resell, sublicense, or redistribute access to the Service

Intellectual Property

The Service, including its design, code, features, branding, and content, is owned by Nestworthy and protected by intellectual property laws. You may not copy, modify, or distribute any part of the Service without our written consent.

You retain ownership of all data you enter into the Service. By using the Service, you grant Nestworthy a limited license to process your data solely for the purpose of providing and improving the Service.

Disclaimer of Warranties

THE SERVICE IS PROVIDED "AS IS" AND "AS AVAILABLE" WITHOUT WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND NON-INFRINGEMENT.

Nestworthy does not warrant that the Service will be uninterrupted, error-free, or secure. Calculations, analytics, and recommendations are for informational purposes only and should not be relied upon as professional tax, legal, or financial advice.

Limitation of Liability

To the maximum extent permitted by applicable law, Nestworthy and its officers, employees, and affiliates shall not be liable for any indirect, incidental, special, consequential, or punitive damages, including but not limited to loss of profits, data, or business opportunities.

Our total liability for any claims arising from your use of the Service shall not exceed the amount you paid to Nestworthy in the twelve (12) months preceding the claim.

Indemnification

You agree to indemnify and hold harmless Nestworthy and its officers, employees, and affiliates from any claims, damages, losses, or expenses (including reasonable attorney's fees) arising from your use of the Service, violation of these Terms, or infringement of any third-party rights.

Termination

You may terminate your account at any time by contacting support@nestworthy.ai.

We may suspend or terminate your access to the Service at any time, with or without cause, and with or without notice. Upon termination, your right to use the Service ceases immediately.

We will make your data available for export for 30 days following account termination, after which it may be permanently deleted.

Governing Law

These Terms shall be governed by and construed in accordance with the laws of the State of Delaware, without regard to its conflict of law provisions. Any disputes arising from these Terms or the Service shall be resolved exclusively in the state or federal courts located in Delaware.

Severability

If any provision of these Terms is found to be unenforceable, the remaining provisions shall continue in full force and effect.

Contact

For questions about these Terms, contact us at:

Nestworthy

Email: legal@nestworthy.ai

Website: nestworthy.ai