Utilizing the STR loophole while living in an ADU

[John Anderson]

Hello, I am currently in the process of building an ADU for my parents. They may not move in for a year or two, and so I am wondering if it makes sense for me to live in the ADU, and list the primary home on Airbnb? My wife and I both have W-2 incomes, and we live in a state with high taxes.

I understand that traditionally this can be a great tax strategy, by using bonus depreciation, and a cost segregation study. However, I am wondering how it is viewed, if I am still technically on the property, though in a separate building all together.

I plan to speak with a CPA, but was wondering if anyone here had some high-level thoughts. Thanks!

[Zach Edelman]

Would definitely recommend conducting a cost segregation study and seeing how much you can depreciate the ADU against your personal taxes. This, at face value, seems like a legal and logical play. Also, bonus recommendation for a STR friendly CPA, which is Ryan Bakee, aka "Learn Like a CPA." Here is his website link: https://www.learnlikeacpa.com/