All Forum Posts by: Fulton Abraham Sanchez

@Bob V.,, hi. Location is no longer an issue as long as your CPA is available via email, text, or phone call. Make sure you reach out to a real estate-savvy CPA, that’s key.

Best of luck, and keep an eye on the profiles available here in the BiggerPockets forum.

@J Giraldo, hi. Great move looking into STRs with a cost seg and bonus depreciation angle. If the property qualifies and you materially participate, the depreciation can definitely help offset W-2 income. The key is structuring it right and documenting hours. Lots of investors are using this strategy successfully.

@Bob V., hi. Bonus depreciation isn’t limited to short-term rentals—it can also apply to medium-term rentals, provided the property qualifies as a business asset and you use a cost segregation study to break out components. The key factor is whether the rental activity is treated as a business vs. passive investment, and that often comes down to material participation and how the property is used.

Hi @Linda Rollins, congratulations on your first STR property! Starting out, it's definitely important to find a real estate–focused CPA who understands the nuances of short-term rental tax rules, especially when it comes to classifying the property, tracking expenses correctly, and maximizing deductions.

While $4,000–$5,000 is common for full-service STR tax strategy, there are often more affordable entry-level options when you're just beginning operations. A good starting point is to review your investment goals and cash flow projections with a CPA to determine the right level of service you need right now versus what you may need as your portfolio grows. From there, you can scale services as your rental income grows.

Good question! There’s no fixed dollar limit — you can deduct all ordinary and necessary business expenses tied to your rental activity (repairs, insurance, travel, professional fees, etc.), as long as they’re properly documented. The key is keeping clean books so you maximize deductions and stay compliant.

@Felipe Manoloff, hi. Great question — you’re right that REP status requires both 750 hours and more time in real estate than in your W-2 role, which makes it tough with a full-time job. Hours generally need to be tied to activities on your own rentals or in a qualified real estate business you materially participate in. Simply “apprenticing” or assisting another professional usually doesn’t count toward your own REP hours unless you have ownership or direct participation in that activity.

@Nilakshi Fernando, hi. Welcome to real estate investing! I work with multi-family investors across different states, including Washington, on entity structuring and tax planning. Be sure to connect with a real-estate-savvy CPA; there are quite a few of us active here on BiggerPockets.

Hi @Monish Anand, I work with many STR investors facing the same challenges — messy books and unclear financials can make it tough to see where the money's going. Be sure to connect with a real-estate-savvy CPA; there are quite a few of us active here on BiggerPockets.

Hi @Ben Szafran. You’re right to double-check this. Generally, your partner’s payout is treated as a sale of his interest, so he may owe capital gains tax depending on his basis and profit. The refinance itself isn’t taxable for you, but his cash-out could trigger taxes on his side. 

@Mohammad Murad, Great question! You don't need both units as STRs. The Airbnb side can qualify under the STR rules if the average stay is under 7 days and you materially participate (your 100+ hours helps with that). The long-term unit will be treated separately as passive. Tracking and structuring properly is key.