All Forum Posts by: Aaron Zimmerman

Absolutely find another CPA that knows the STR rules and puts you in the best position possible in the event of an audit. The STR loophole is very nuanced with a lot of hoops to jump through. The biggest things to figure out:

1. Material participation (there are 7 tests you can use). How do you plan to qualify? Many people use 100 hours and more than anyone else in the activity. This means that you must not only keep track of yours (and spouses) time but you must also keep track of anyone else that worked in the STR activity.

2. Average customer use period (must be 7 days or less)

3. Property manager or no property manager. 

There are some other key details as well but a consistent message is documentation. It's imperative. 

Bubby - I would try and focus who is more real estate focused than location focused. Most CPAs work with investors in their own state and as well as out of state. I would also make sure the CPA is aware of the STR rules. A good place I've found to get educated is the Tax Smart REI podcast with Brandon Hall. Really good content on this subject

What I try to do with people that come to me is to understand your situation first (I.e. income, possible tax savings with STR, etc) and then have a more informed conversation. I'd say the biggest things are knowing the STR rules and having a system to ensure you check the boxes so that can claim the STR loophole.

@Jonathan Klemm it'd be divided by bedrooms. So if there's 3 bedrooms and the owner is using one bedroom, you'd be able to take it 2/3 as rental. You could get in cash/Zelle but you'd need to report it anyway.  

Yes- that would be correct. It’s either itemized or standard deduction, whichever is greater. In the example you provided, you’d be saving money. However, keep in mind, if you’re house hacking, you will need to allocate that between rental (schedule e and deductible) and personal (schedule a, potentially advantageous to use)

Let me @Jonathan Klemmthanks for the shoutout. 

Please PM me if you’d like to talk. Thank you!

@Steve Bell feel free to reach out with any questions. 

@Francheska Viejon - Feel free to reach out to me if I can provide any value. @John Warren - thanks for the recommendation. 

Thanks @John Warren. Feel free to PM if you'd like to talk about taxes!

Sorry for your loss. I do think this would be a more appropriate time to switch to someone who’s more specialized. I’d recommend looking around on BP and connect with CPAs that are well respected. Best of luck in your search.