Two spouses both make $500K a year
Summary
AI-generatedLearn how a short-term rental (STR) can significantly reduce your tax burden by offsetting W-2 income. This strategy leverages bonus depreciation and other deductions from STRs, leading to substantial tax savings and increased take-home pay, as demonstrated by a real-world example.
Key insights
For a short-term rental to not be classified as a passive activity under Section 469, the average guest stay must be less than seven days, and the owner must materially participate (e.g., over 100 hours managing the property).
Tools & resources
Cost Segregation Studytool
A cost segregation study is a tax strategy tool that reclassifies building components to accelerate depreciation deductions.
Frequently Asked Questions
Curated by Learn STR by GoStudioM · Summary & key insights generated by AI · Reviewed by editorial