Remote STR Cost Seg + Bonus depreciation for W2 tax offset

[Pratap Singh]

Can remote STR help us to qualify STR tax benefit. STR in Florida and owner lives in VA. Managing remotely from VA after initial 2 weeks of onsite hours in furnishing property (~80 hrs) after closing in june.

And 20+ hours in remote remote co-ordinating bookings, cleaning by cleaner, answering guest etc. Except cleaner no other help as its new construction so no maintenance expected.

[Anna Antipkina]

@Pratap Singh I'm also trying to figure this out right now. I purchased my first STR at the end of 2022 and got it up and running and starting managing bookings and guests in November. I kept a very diligent log of all the time I spent setting up the house itself, all my systems and processes and all my guest and cleaner communication. I came up with 140 hours at least in 2022.

Spoke to my CPA about the STR tax loophole and first he told me i have to make LESS than $125k in order to claim losses against my W2 income. Then I sent him the specific ruling on the STR loophole with the 7 tests mentioned by Ian and he then said that in order for me to pass the 100 hour test, I have to have worked less than 100 hours in my W2 which obviously would never pass. On top of that he said that in order to pass the second test that Ian laid out above, you have to have spend at least 50% of your time managing the STR (50% is calculated from the total W2 hours you work + the hours you spent managing your STR) My example would be 1,700 hours on my W2 + 140 hours on my STR) Based on that OF COURSE I would fail the 100 hours test every time.

So he told me the only way I can take advantage of the STR tax loophole is if I have 10+ properties + REP status or I was retired. Is he right? Or am I talking to the wrong guy?