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Updated about 1 year ago on . Most recent reply

User Stats

10
Posts
24
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Desiree L.
  • Rental Property Investor
  • Delray Beach, FL
24
Votes |
10
Posts

STR Loophole- Huge return for me

Desiree L.
  • Rental Property Investor
  • Delray Beach, FL
Posted

I have to give a shout out to Bigger Pockets! I am a regular listener to the Bigger Pockets podcasts when I am doing chores around my house and my STR property. A few months ago, I was listening to a podcast (I think it was one of David Green's, but I don't remember which one.) He had a female CPA on who talked about the benefits of an STR Loophole for those of us who have W2 income as a way to take deductions that are normally not permissable when the tax payer makes a certain amount of income. I had a huge amount of expenses in 2022- pool, new windows and doors, that I was unable to use as deductions because of my W2 income.

After hearing about this STR Loophole, I reached out to my tax preparer to see if she was aware of this. She was not. She contacted the IRS to learn more. She just amended my 2022 taxes and I am getting a very large 5 figure refund from the IRS. I have another reason to thank Bigger Pockets for my financial well being.

Most Popular Reply

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8,026
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6,721
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Michael Baum
#2 Short-Term & Vacation Rental Discussions Contributor
  • Olympia, WA
6,721
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8,026
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Michael Baum
#2 Short-Term & Vacation Rental Discussions Contributor
  • Olympia, WA
Replied

Hey @Desiree L., as I have said about a million times, it isn't a loophole. It is just the IRS law.

A loophole is something that is not intended and can be considered almost untoward.

Loophole - "A way of avoiding or escaping a cost or legal burden that would
otherwise apply by means of an omission or ambiguity in the wording of a
contract or law."


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