Feedback on 2025 STR loophole execution

[Prem S.]

Hey everyone. Our household makes about $500K per year. Obviously, we

are paying a lot of tax, but we have never seriously thought about

reducing the tax that we are paying. However, for the first time, I

started looking into it about a month ago and I found that there's a

thing called short-term tax strategies—not really a loophole, but that's

what people call it. This involves buying a property, let's say a

property of $1 million as an example, and using cost segregation along

with bonus depreciation to write off our W-2 income this year. I have a

few properties that I have been looking at, and most likely I'll

purchase one this week. If cost segregation is completed before the end

of the year and the property is listed on Airbnb and we meet the

material participation requirement, is it all realistic to do this year?

It's also hard to find a CPA who can answer these questions on an

hourly basis. Please provide a list of CPAs who are experts in

Short-Term Rentals (STRs) and could work on an hourly basis. Thanks.

[Ashish Acharya]

@Prem S., I’ll answer this from a tax perspective. Yes, it is still realistic to pull this off in the same year if you move quickly. For STRs, you do not need REP status. You only need to materially participate and have the property available for rent before year end. If you place it on Airbnb, get guests in, and complete a cost segregation study, you can take bonus depreciation against W2 income as long as you meet the hour requirements.

The key parts are: buying the property, putting it in service, tracking your hours, and getting the cost seg report done in time. Many investors do this every year.

I just sent you a DM with resources that will actually help you get this strategy right, way more useful than a list of CPAs. Feel free to check it out anytime.

Good luck, and happy to connect.