All Forum Posts by: Amy L. Pagels

Hey BP community! We are clear to close on our first STR in Gainesville, FL with a closing date of 12/13. We have agreed to rent back to the sellers for a week and will be able to take possession on 12/19. We are out-of-state investors and I've started to purchase furniture for this 3 bed/2 bath SFH. Has anyone had to manage where the furnishing shipments go before you can officially move in?  I'm flying in for a week from the 18th-23rd to get this fully furnished and listed on Airbnb before the end of the year.  Timing is critical to ensure we have everything we need to stage the house as soon as the painters complete work on the 20th.  Our plan is to manage this property remotely so we don't have a property manager to rely on.  Any suggestions or learnings?  I appreciate any help you can provide!

 @Bonnie Griffin Kaake - I noticed on your website that you focus on commercial properties. We are purchasing a SFH. Does that still fall into something you would be interested in? Thanks!

@Michael Baum - Thank you for sharing that article and appreciate the guidance.  I plan to qualify under the 7th rule listed - Based on all of the facts and circumstances, you participate in the activity on a regular, continuous, and substantial basis during that year. Note that this test only applies if you work at least 100 hours in the activity, no one else works more hours than you in the activity, and no one else receives compensation for managing the activity. I've been tracking time and since I've done all the market research, house search exploration, etc. and we plan to self-manage our STR, hopefully we will be able to qualify. I'm going to meet with our CPA to see what types of documents we need to provide to prove hours worked.

 @Jon Martin - This chain has sparked me to connect with my CPA on Monday to go into this in more detail. I'm hoping there is a way to offset our W2s simply by showing material participation w/ our STR but want to also avoid any trouble with the IRS

Thanks for the clarification @Terry Rossi!  The seller ended up accepting our offer so we will be closing on the home in December and then renting back to them for a week.  We won't have it ready to go up on Airbnb before the end of the year but I'm hoping with that rent back, we can qualify for the 2022 100% cost segregation.

@Michael Baum - I appreciate you sharing the link! Although we are out of state, we are planning to self manage our STR but will need to hire out for cleaning/handyman services. Since this is going to be one of several properties we plan to purchase, I anticipate the management, research, and education should keep us above on hours. I've been keeping a log to reach hours and it's amazing to see how quickly time adds up! Even with my W2!

 @Bonnie Griffin Kaake - This is exactly the kind of guidance that I was looking for!  Do you work with clients outside of Denver?  If so, I would be interested in chatting with you further.  Thanks much!

 @Sean Bramble - Thank you for the response!  I didn't realize this was the last year to claim 100% depreciation so I will look into that with our CPA.

We are new investors and looking to put an offer down on our first property in the next week as a STR. My question is for tax purposes, are we hurting ourselves in terms of the qualification of materially participating and maximizing tax deductions on our W2s by purchasing so late in the year? With the holidays coming up and a current owner that doesn't want to leave until 12/17, we will likely NOT be set up on Airbnb w/ guests in 2022. Should we wait until 2023 to close on the house or are there still tax benefits to closing in 2022? Thanks in advance!