Questions about taxes with short term rentals

Richmond, Virginia
Tax, SDIRAs & Cost Segregation
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Questions about taxes with short term rentals

Gil Enav
Member since 2021 · 7 posts · 4 votes

Hey all,

I am house hacking a duplex right now with an unfinished basement.  The basement is being converted to a 1 bed 1 bath studio to be used as a short term rental with an average stay of less than 7 days. My plan is to offset the expenses to construct and operate the basement against my W2 income. Does this plan sound like it could work? 

Also I'm in search of a tax advisor, if anyone has a good referral.

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Jeff Nash
Accountant · McKinney, TX · Member since 2023 · 393 posts · 580 votes
3y

You can go here to look for a tax professional - https://www.biggerpockets.com/....

Also, your strategy might be able to work provided you implement it properly.  Would be glad to discuss if you want to connect.

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  • Jeff Nash
    Accountant · McKinney, TX · Member since 2023 · 393 posts · 580 votes
    3y

    You can go here to look for a tax professional - https://www.biggerpockets.com/....

    Also, your strategy might be able to work provided you implement it properly.  Would be glad to discuss if you want to connect.

    3Reply
  • Gregory SchwartzBusiness Member
    Rental Property Investor · College Station, TX · Member since 2016 · 1k+ posts · 1k+ votes
    3y

    I was able to off set the renovations to my house by Airbnb'ing a room. We added a bathroom and completely remodeled a bedroom to be used strictly for Airbnb purposes. Im not a tax professional so I dont know the details of how they did it but if the first guy tells you it cant be done I'd get a second opinion. 


    Also from a guy whos had 3 CPAs in 3 years. Its worth it to get a real estate CPA if thats your primary source of wealth. The business friendly CPA's I used previously just didnt know enough.  

    [email protected]443-812-0357
    Schwartz Realty Group5117 Reviews
    WebsiteView Page
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  • John Malone
    Attorney · Boston, MA · Member since 2023 · 139 posts · 75 votes
    3y

    @Gil Enav it certainly could but there are nuances. Not all renovations would be eligible for accelerated depreciation but some could.

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