All Forum Posts by: Scarlett G. Banks

Hello, I've been researching how to lower my tax burden and discovered RE Professional status which is being phased out. Hopefully Trump brings back the 100%. But there's also STR scenarios to qualify for active income deductions. I was reading the forum and everyone was mentioning renting for an average of 7 days or less but that's only one scenario and I believe it doesn't have to hit all the scenarios, just one.

Is anyone renting for 30 days and using the other scenarios to qualify for active STR Tax breaks?

AirDNA article for reference:

"The average guest stay is between 8 and 30 days, and you provide significant services – If guests stay more than seven days but less than 30, your rental may still be non-passive if you provide substantial services beyond basic maintenance. This includes things like:

Daily cleaning

Concierge services

Meals or room service

Other hotel-like amenities

You materially participate – You can still override the per se passive rule by proving that you actively manage the property. This requires meeting one of the IRS’s material participation tests, which we’ll cover shortly."

I want to have a clear plan for how to qualify for the STR Tax break before I invest and. Then get a cost segregation study and give that to an accountant.

Is anyone running 30 day rentals and what method do you use to qualify for active income status? Daily cleaning is an easy service to offer tenants. I'm wondering what else you can do that won't be too much of a hassle. And what records do you provide your accountant in case there's an audit? 

Thanks in advance!