All Forum Posts by: Angelo Cortez

What are you folks doing? I bought a STR last year, and if I file now, I get 80% bonus depreciation. Alternatively, I can file an extension and get 100% somewhere down the line this year.

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@Sean O'Keefe If i'm doing the STR loophole, wouldn't it be on the Schedule C?

1 Vote

Hi BP Community,

I collect paintings. Paid ~3.5k of paintings last year. If I put them in my STR, can I write them off on my Schedule C?

2 Votes

Hi,Michael. Love your posts as they are super informative. I recently paid someone to do my roof and replace the carpet (~5k expense) on my short term rental in 2023, however he won't fill out the 1099-NEC. Does this mean I won't be able to deduct the expense from my 2023 income? Can I still write those expenses on my Schedule C? Should I still file it without the SSN ( I have address, email and full name) ?

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STR Classification: How many times do I need to rent out the property this year to classify it as a short-term rental for tax purposes? Does having 1 STR contract for 1 day count?

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When is the best time to do a cost seg study? The day of closing? I'm closing on a STR on 12/6 ( trying to do the W2 write-off).

Also, I was listening to this podcast as well at 22:55, he alludes to switching from STR to MTR after 3.5 months. Do you know where did he get that number from?

https://open.spotify.com/episode/79Z9kUYn9kLw3BIjM7sv2Y?si=9...

1 Vote

Quote from @Michael Plaks:

Whatever the situation is that either makes the current model (STR) unsustainable or makes an alternative (LTR) more advantageous, either economically or practically. Examples:
- vacancies
- cost of compliance
- operating costs
- vandalism/theft
- takes too much time to manage
- security concerns
- neighbor complaints
etc

Thanks so much. I will keep those into consideration when converting from STR to MTR.

I was listening to this podcast as well at 22:55, he alludes to switching from STR to MTR after 3.5 months. Anybody know where did he get that number from?

https://open.spotify.com/episode/79Z9kUYn9kLw3BIjM7sv2Y?si=9...

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I was told by my CPA that I would not need 100 hours for this year (only next year). However, I would need to be the only one who has participated in it this year. Is that true ?

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Sacramento, California

Quote from @Michael Plaks:

Quote from @Angelo Cortez:

I'm aware I need to do everything for December. I'll likely use the friend route. Am I still able to rent it out to him for less than a few days because of the Augusta rule (don't have to report to IRS if it's less than 14 days)? Just not sure if I'm able to get it counted as an STR for this year if I don't have the permit this year.

Sorry for being too direct. Your thinking is polluted by listening to too many podcasts without having the big picture. You think there're some magic tax benefits floating around, and you just have to grab them all, like in a video game. Not your fault, because this is how they're promoted.

The Augusta rule has nothing to do with the STR loophole, it is for temporarily renting your own home.

Friends can stay in your STR, but they have to pay you full market rate, and you report it as your STR income.

STR permit is your local compliance issue. The IRS does not care about it, as long as you meet all the IRS tests.

I appreciate the directness. I see what you're saying about county vs federal compliance. I suppose it's sort of a gray area if I'm able to operate it as a STR for this year officially while following federal guidelines, and not follow the county.

0 Votes

Sacramento, California

All Forum Posts by: Angelo Cortez

Angelo Cortez has started 9 posts and replied 38 times.

Post: Joshua Tree STR Hosts/PM

Post: File now or wait until 100% bonus depreciation ruling?

Post: Claim paintings as furnishings for STR for Schedule C?

Post: Claim paintings as furnishings for STR for Schedule C?

Post: EXPLAINED: sending 1099s to contractors and vendors

Post: Seasoned Real Estate CPA Expert Answering all Questions on Investing Tax Strategy

Post: Seasoned Real Estate CPA Expert Answering all Questions on Investing Tax Strategy

Post: 2023 STR Cost Seg -> 2024 MTR/LTR conversion implications?

Post: Closing STR in December, but won't get STR permit until January. (STR W2 Taxes)

Post: Closing STR in December, but won't get STR permit until January. (STR W2 Taxes)