Short term renal TAX effect on long term rental

[Iman Janahmadi]

Hello

My spouse and I are exploring the idea of purchasing a short-term rental property, primarily for the tax advantages. We currently own a couple of long-term rentals, but due to income limitations, we’re unable to use those losses to offset our W-2 income.

We’ve read that under certain conditions, actively managing a short-term rental might help us qualify as real estate professionals, allowing us to treat the losses as non-passive and use them to offset W-2 income.

Do you have experience with this strategy? We’d really appreciate any guidance or insights you can share—especially around whether adding a short-term rental can help us meet the real estate professional requirements from a tax standpoint.

Thank you!