Convert LTR to STR or MTR in July- Which strategy is best for maximizing tax savings?

[Brian Malavsky]

My LTR tenant moved out end of May and I converted the property to suit MTR and STR strategies. For the sake of this conversation let's say the area is equally advantageous for both strategies in terms of bookings and returns (this is actually the case). I am going live in July and would like to know which strategy can provide the largest tax savings.

[Michael Plaks]

@Brian Malavsky

In my opinion, and not everyone agrees, if you convert it mid-year, you will not be able to claim it as an STR in 2023. The STR occupancy test will have to count the entire year.

Here's my long post on STR taxation: https://www.biggerpockets.com/...