Insight
Hiring a full-service property manager may disqualify hosts from meeting the 'materially participate' requirement for the '7-Day Rule' tax loophole.
The Short-Term Rental Tax Loophole: What Hosts Need to Know in 2026
Summary
STR hosts can leverage the '7-Day Rule' to treat rentals as active businesses, offsetting income with losses. This IRS-approved loophole requires averaging under 7 days per stay and material participation, offering significant tax savings.
Key takeaway