Pay Zero Federal Taxes on $300K W-2 Income

Michael ChangSep 16, 20250m 6s950 viewsScore 85
Pricing & Profitability
intermediate
Tax Strategy
Profitability
Expenses
M

Summary

AI-generated

Michael Chang explains how to legally reduce federal tax liability to $0 on a $300,000 W-2 income by investing in a short-term rental property, actively managing it for over 100 hours annually, and leveraging cost segregation and bonus depreciation to create paper losses that offset the W-2 income.

Key insights

  • A $300,000 W-2 income can result in a federal tax liability of approximately $75,000 to $90,000, with limited options for deductions.

Mistakes to avoid

  • Without working 100+ hours annually on your short-term rental, the losses are classified as passive and cannot offset W-2 income.

Tools & resources

  • STR Like The Best Newsletterwebsite

    STR Like The Best Newsletter for STR investors.

Frequently Asked Questions

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