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Las Vegas Condotel: Syndication and Bonus Depreciation Questions
Questions for Real Estate CPAs and Attorneys (or genuine experts), preferably who know the Las Vegas Condotel market:
Looking at my first investment property. Considering going in with other investors on a condotel unit in Las Vegas.
Do condotels have anything different about them - as far as taxation/regulation/classification vs any other type of short term rental?
The big, pressing, motivator in my choosing to start with STR is my recent learning about the "STR Tax Loophole" and especially "bonus depreciation."
I am a (newly licensed) Real Estate Professional. My other investors are not. I will be managing all booking, renovation, and maintenance operations of the STR (besides mandatory front desk operations, and cleaning - required to be run by the Hotel). The other investors will be, out of state, passive investors.
I was thinking to create an LLC taxed as an S-Corp?
How will tax benefits break down? I know RE Professionals get better benefits than non. I know that participation in operations affects the tax benefit in some ways? How do I structure our entity to get everyone maximum tax benefits? What will their benefits look like vs mine? Will business expenses be deductible for all against other active income - or only for me?
How does bonus depreciation work? Will all the money put in during the the first calendar year qualify? (downpayment, closing costs, HOA fees, renovation, furniture...etc?) What's covered and what isn't?
Will depreciation and bonus depreciation be deductible for all investors? Will that deduction be usable to offset taxes from other income for them?
I know this is a lot. Thanks for any help anyone can give.