All Forum Posts by: Krishnan Iyer

Yup, what @John Underwood said. 

(a) LLC or not, does not matter, the LLC is just a pass thru
(b) "STR's aren't occupied nearly as many days ... " - this has no bearing on the STR loop hole

When did you buy the house and when do you plan on putting your STR into service? This will be the determinant. Its pretty simple after that.

A CPA who specializes in real estate might be important. Give me a shout if you need help. Tc.

Lloyd .. Look for "Material Participation" - there are tons of resources and details on the internet. The STR path is very attractive when it's done right. For example: At the end of the year average stays should be 7 days or less for it to be an STR (IRS), host it yourself - do not use a property manager initially, materially participate in the STR (look up the 100 hr. and 500 hr. rule) - this total hour number is for you + spouse, document ALL details on the work you are doing in the STR, do a cost seg on your property, use the cost seg to file for bonus depreciation - any STR property put into service in 2025 (after Jan 20) is eligible for 100% bonus depreciation (HUGE PLUS!). There is no deadline, but you do want to get in sooner and not wait till late Dec to do this. Hit me up if you need any help.

PS: Material Participation is the way to get help with your STR losses vs. W2 income.

Krishnan

Katherine - my 2 cents. First of all, you cannot get any of the tax benefits of running this as an STR because the IRS's definition of an STR is that at the end of the year, the stays must be an average of 7 days or less. So tax benefits from material participation etc. cannot be applied. Then with the 30 day minimum requirement, you can definitely post it on Airbnb or VRBO -they are just channels for showcasing your place and getting a reservation. According to your towns rule, looks like you need a 30 day minimum. So you will have to show it as a 30 day minimum on Airbnb and then you will not a 1 week stay at all. Infact if you do get a 1 week stay, it might violate the 30 day rule.
Hope this helps.

Krishnan 

Never had an issue with their customer support.they have a good onboarding process and LOTS of online information that answered almost all my questions. Lemme know if you need help.

Hall CPA .. one of the best!

 Software cost seg is easy and accurate - diycostseg.com - they also provide audit defense. 

Yes you can! Its called Material Participation - you need to materially participate in running that one STR.

diycostseg.com and yes they provide audit defense too. I used them for my 3 STRs.

krishnan 

- All about Real Estate/STR taxes (State, Federal, Occupancy Tax etc.)
- Material Participation
- Cost Segregation/Bonus Depreciation

Krishnan.

… btw, don’t forget the massive advantages of accelerated bonus depreciation.

krishnan