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Updated 7 months ago,
Should I add an STR(s) to my LTR business to take advantage of the STR Tax loophole?
Hey BP! I currently own a couple multi-family properties that are all LTRs and work a full time 6-figure job, so becoming an RE pro is almost impossible. I max out the $25k to offset my W2 under passive activity rules (as its slowly phased out for me).
That being said, would it be beneficial for me to buy one or two STRs primarily for the purpose of being able to offset my W2 income? (providing I meet all the criteria). If they were the right land/building ratio and made sense to do a cost seg/bonus depreciation, could I potentially offset my entire W2 salary? If I owned several LTRs and STRs, I'm under the assumption those two would not mix when it comes to depreciation and tax deductions because one would be active vs passive?
Hopefully these questions make sense, and I'm open to suggestions on more tax savings, thanks!