Tax - STR - Triplex

[Cody Shepherd]

Hello Investors!

Looking for insight.

I am currently househacking a duplex i purchased in March and remodeled. I live in one side and rent out the other. During the remodel of one of the units I closed off the entrance to the lower level and created the opportunity for a triplex using the back entrance.

I have thought about turning that unit into a STR as I am near the airport.

Another layer... my wife is pregnant and due in January. Next year she can qualify for the tax status of real estate professional when managing the air bnb.

Saying all that, is it possible to utilize the real estate professional status on this triplex for 1 of the units? How would that work?

I'm looking into a cost segregation study on this property to accelerate depreciation as well.

Thanks!

[Ashish Acharya]

There is not need for REPS status for what you are doing. You just need to meet the material participation rules.