STR tax implications and mitigating tax impact

[Bryce Bender]

Hi all,

I have been using my basement as an STR house hack for about 2 months, currently I'm only listing on AirBnB. It's done much better than I predicted (due to the summer months probably) and I want to ensure I have all my ducks in a row for next year's taxes so I don't get blindsided.

As a live in STR (where I rent out a portion of my home) would making an LLC help in mitigating tax impact? I've kept a detailed record of start-up expenses for write offs, but will the AirBnB income be taxed at the end of the year based off of my income tax bracket? (Most of my income is W2 income, about 33% above the local median).

Please share your STR tax mitigation stategies, to make this a viable investment strategy. The more details you can share, the better!