Do I need real estate CPA? 

I am not an attorney nor a CPA.

@Kearan Tolles I am not an attorney or CPA the below is my layperson understanding of the law.Generally holding long term rentals (passive income) it is best to do in an LLC, single member or taxed as a partnership.

Hello BP Community,   My name is Derek Peterson and I am a CPA that works heavily with real estate investors. 

., meet the 100-hour rule and no one else spends more time than you), you may qualify for the STR loophole, which means:Losses from the property, including depreciation, can offset your W-2 or active income, not just passive.You may be eligible to accelerate depreciation with a cost segregation study and take bonus depreciation—which is a major tax shield in the year the property is placed in service.Additional Tips:Use a separate business bank account under the LLC.Track all property-related expenses carefully—these can include mortgage interest, utilities, supplies, property taxes, and repairs.Make sure to classify the STR activity correctly on your tax return (typically on Schedule C if you're materially participating).Consider filing an election to be treated as an S-Corp for your LLC if your Airbnb becomes highly profitable—it could reduce self-employment taxes on your earnings.This post does not create a CPA-Client relationship.

.), you're often limited to $25,000 of passive losses per year—and that phases out completely if your modified adjusted gross income (MAGI) exceeds $150,000.Real Estate Professional Status (REPS) or the STR Loophole: To use rental losses to offset W-2 or other active income, you must either:Qualify as a Real Estate Professional (750+ hours, primarily in real estate) and materially participate in the property.Or, if it's a short-term rental (average stay under 7 days), materially participate (100+ hours and more than anyone else) to convert it from passive to non-passive—even without REPS.Standard deduction vs. itemizing: You mentioned your CPA said deductions didn’t help due to the standard deduction.

It seemed like most the folks you have on staff are CPA or other, but no specific legal experts.

Passive losses can only offset passive income—they don’t reduce your W-2 income in most cases.So while your duplex rental may generate losses on paper, they won’t reduce the amount of tax withheld from your W-2 unless:You qualify as a real estate professional, orYou materially participate in a short-term rental under 7-day average stays, orYou have other passive income to offset.What to do instead:Don’t stop your W-2 withholding entirely unless you’ve worked with a CPA to confirm a significantly reduced tax liability.If your rental qualifies under STR or REPS, then yes—depreciation and losses can offset W-2 income, and you might reduce withholding.Otherwise, you can still update your W-4 to fine-tune your withholdings slightly if you tend to overpay and get large refunds, but be conservative.Run a midyear tax projection with a real estate CPA who understands REPS, STR, and passive loss rules.

Here are some questions that I would typically ask a CPA:- Are you experienced in working with my industry?

You might consider getting a second opinion from a CPA who specializes in real estate investing, especially one who understands REPS, STRs, and passive activity grouping rules.This post does not create a CPA-Client relationship.