Advisement on Tax planning

[Zeni Kharel]

Hello all,

I am new to biggerpockets and really excited to have discovered this community!!

I needed the forum's advise on how to reduce taxes.

My husband and I both are high W2 earners. We are moving to Colorado Springs and searching for a home. Neither of us can qualify as Real Estate Professional now or in the future. I have heard about short term renting loophole but we both are absolutely new to the area so leveraging this loophole right now is not an immediate possibility. 

How do we strategize tax planning in the short and long term? We are interested in foraying into real estate eventually.

I would appreciate this forum's expertise. Thank you and thrilled to be here!

Best,

Zeni

[Aaron Zimmerman]

If you're getting into the short term rental loophole, I'd recommend listening to some resources in the space such as short term rental riches and bill Faeth. Both have great podcasts. 

from a personal finance perspective, I'd recommend looking into financing options with lenders. After that, learn more about the STR loophole such as material participation, 7 days or less rule, and personal use days. From there, reach out to a CPA to ensure you're implementing the strategy correctly.