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Brice Alef
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Offsetting W2 income with Short Term Rental unit

Brice Alef
Posted

I own a triplex and was wondering if I could use one unit as a short term rental to offset my W2 income as a trader business. If so, are there any pitfalls to doing it this way?

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Michael Plaks
Pro Member
#1 Tax, SDIRAs & Cost Segregation Contributor
  • Tax Accountant / Enrolled Agent
  • Houston, TX
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Michael Plaks
Pro Member
#1 Tax, SDIRAs & Cost Segregation Contributor
  • Tax Accountant / Enrolled Agent
  • Houston, TX
Replied
Quote from @Brice Alef:

I own a triplex and was wondering if I could use one unit as a short term rental to offset my W2 income as a trader business. If so, are there any pitfalls to doing it this way?

You can, but you will only have 1/3 of the total cost segregation benefits, and only for one year.
Read this: 
https://www.biggerpockets.com/forums/51/topics/1122635-the-s...

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Sean O'Keefe
  • CPA | California
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Sean O'Keefe
  • CPA | California
Replied
Quote from @Brice Alef:

I own a triplex and was wondering if I could use one unit as a short term rental to offset my W2 income as a trader business. If so, are there any pitfalls to doing it this way?

 @Brice Alef I agree with MIcheal. If you decide to do this make sure to plan ahead and track the income and expenses separately for each unit since LTR tax treatment is different than STR.

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