STR Taxes and Financing Options

[Lonnie Carter]

Looking to purchase our first STR. Are their tax advantages to financing as a conventional rental property with 20% down vs a vacation home with 10% down? How does depreciation work on STR's and does the financing structure affect it?

I am going to be consulting with a tax professional in a couple of weeks, but looking for any insight and good questions to ask.  Thanks

[Yonah Weiss]

Originally posted by @Joshua Strickland:

Depreciation is just like a regular SFR rental. Would recommend looking into a cost segregation to accelerate some items.

Actually it's different. STRs if the average stay is less than 30 days (which is the definition of STR) the depreciation schedule is 39 years, like commercial properties, as opposed to long term rentals which are on a 27.5 year schedule.