According to this article, the "One Big Beautiful Bill Act" tax code changes will likely cause STR markets to boom in 2026 and 2027 by allowing owners to write off 100% of the purchase price of eligible assets. Hosts should begin planning for depreciation before closing on properties and consult with their CPAs to maximize potential tax savings.
The tax code changes from the "One Big Beautiful Bill Act" enable businesses to write off 100% of the purchase price of eligible assets, creating an STR "loophole" that allows short-term rental owners to treat depreciation losses as active, not passive, potentially offsetting W-2 income.