Closing STR in December, but won't get STR permit until January. (STR W2 Taxes)

[Angelo Cortez]

As title says - I'm closing on an STR in December, but I likely won't get the STR permit for it (Sacramento) until January. Is there a way I can still get the tax deductions for 2023? What if I furnished it in 2023 and had my parents stay in it for a small fee? Getting some anxiety here as the year is ending.

[Michael Plaks]

Quote from @Angelo Cortez:

As title says - I'm closing on an STR in December, but I likely won't get the STR permit for it (Sacramento) until January. Is there a way I can still get the tax deductions for 2023? What if I furnished it in 2023 and had my parents stay in it for a small fee? Getting some anxiety here as the year is ending.

No you cannot. Only visitors that pay full market price count as STR stays, and you need more than one stay in December. And if you put someone there without permit, then you are breaking local law for the sake of accelerating your tax deduction.

Also, you will need to do everything yourself during December, including cleaning. Otherwise, even with some guests, you will likely fail another requirement for an STR: material participation.