I shielded $446,000 of income from taxes with one STR property

Michael ChangDec 28, 20250m 13s2.5K viewsScore 82
Pricing & Profitability
intermediate
Tax Strategy
Profitability
Expenses
Bookkeeping
Multiple Properties
M

Summary

AI-generated

Michael Chang details how he shielded $446,000 of income from taxes on a single STR property, resulting in $72,090 in cash flow and $125,988 in tax savings, yielding a 43.5% return on investment. He achieved this by utilizing bonus depreciation, renovations, mortgage interest, and operating expenses to offset W-2 income.

Key insights

  • Using a cost segregation study, you can identify portions of a property that qualify for bonus depreciation, which accelerates depreciation deductions in year one.

Mistakes to avoid

  • Failing to document hours and expenses meticulously can cause issues with the IRS, so keep detailed records.

Tools & resources

  • Cost Segregation Studyservice

    A cost segregation study helps identify assets within a building that can be depreciated over a shorter timeframe than the building itself, leading to higher depreciation expense and lower taxes in early years.

Curated by Learn STR by GoStudioM · Summary & key insights generated by AI · Reviewed by editorial