2025 Airbnb Tax Savings Explained - Bonus Depreciation, Material Participation, STR Loophole

Summary

This video explains how high-income earners can use the "short-term rental loophole" to achieve significant tax savings in 2025. It breaks down complex topics like bonus depreciation, cost segregation studies, and the material participation requirements through a clear, real-world example. The key takeaway is that by actively managing a new STR property and documenting over 100 hours of work, investors can use a large depreciation expense to offset their W-2 or active business income, drastically reducing their tax bill. The video emphasizes the need for a cost segregation study to unlock this benefit and provides a practical roadmap for meeting participation requirements.