Short term rental tax benefits against W-2 income

[Haris Mehovic]

Hello,

Just a quick question for anyone who might have some knowledge on it.

If I team up with friends to buy an Airbnb property, can we split up the bonus depreciation loss against all of our w-2 incomes?

Thank you!

[Jeff Nash]

That article @David M. referenced is solid. Assuming it qualifies as a STR to you and the others involved based on the criteria, you most likely would need to evaluate if the depreciable basis provides a sufficient deduction with or without a cost seg (normally the latter is necessary). Depending on various factors such as when you purchased it, how long you have had it in service and rented it during the year, etc you might be looking at a "cash cow" so it might not be as beneficial as you think once the tax benefit is allocated amongst you.