Tax Savings

Reduce your tax bill legally by investing in short-term rentals

The general gist of the STR loophole is quite simple. Suppose the average stay of your guests over the course of the tax year (only considering actual rented days) is 7 days or fewer, and you materially participate in the activity (think business owner versus investor). In that case, your rental activity is not deemed passive. To take this one step further, since your investment into the rental property is considered at-risk, losses from this type of activity are not limited. They may be deducted against other sources of income such as W-2, K-1 from an S Corp, investment income, etc. Yay!

Some of our clients have seen mid-six-figure deprecation from one property!

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