What documents to collect if material and active participation on a rental property is claimed?

[atatarokh]

I have had a huge loss due to the damage that a renter did to my property and some expense for general upgrade.

I am employed but my spouse was unemployed for half of the year. She managed to get the property back in shape and rent it out again.

I am planing to check the mark for active and material participation to offset some passive income I made during last year. I have the receipt for payments I made to my contractor and I paid him all in cash.

What other documents I need to collect just in case I am audited and I need to proof this participation and payments?

[Mike9241]

read this reg for the rules for material participation.

https://www.law.cornell.edu/cfr/text/26/1.469-5T 

any of the 7 items listed in (a)

subparagraph (f)(4) details methods of proof

for payment docs like the invoices (best if it describes what was done), bank statements or receipts to prove payment.