Investment income offset by depreciation loss

[Dan Ikon]

An investor considers acquiring a short-term real estate to offset his investment income by depreciation loss. Is it a valid option?

[Michael Plaks]

Quote from @Dan Ikon:

An investor considers acquiring a short-term real estate to offset his investment income by depreciation loss. Is it a valid option?

Acquiring a business (and STR is a business, not an investment) for tax purposes is not the line of thinking I can endorse. It should be acquired for other reasons, in my opinion, with taxes merely being a side benefit.

That said, if he qualifies for STR tax benefits - which is trickier than it often seems - then he can offset any type of income. He must also understand that this is a single-year tax relief, not continuous.

Have him read this: https://www.biggerpockets.com/forums/51/topics/1122635-the-s...