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Updated over 1 year ago on . Most recent reply

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1
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Nicole Patching
  • New to Real Estate
  • Hermiston, OR
1
Votes |
1
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What is the length of time in service needed to qualify for short term tax loophole?

Nicole Patching
  • New to Real Estate
  • Hermiston, OR
Posted

If a property is purchased and renovated to be a short term rental in the same calendar year, how long does the rental need to be active in service (i.e. on Airbnb) to qualify as a short term rental for the short term rental tax loophole (putting aside the material participation  and cost segregation study that are also needed)? I.e. If I were to purchase a property now, renovated it and get it up and on Airbnb in December with active rentals happening during that month. Would the propery be considered a short term rental that, should all other requirements be met, and a cost segregation study performed, to qualify for the short term tax loophole/bonus depreciation? 

Most Popular Reply

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151
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114
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Joseph Palmiero
  • CPA
  • Pennsylvania
114
Votes |
151
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Joseph Palmiero
  • CPA
  • Pennsylvania
Replied

You need to have at least two guest stays that average 7 days or less.

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Palmiero CPA, LLC

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