Hello all,
I’m looking for a CPA who has extensive experience dealing with short-term rental tax strategies. Here’s our situation:
- I work full time as a W-2 employee.
- We are looking to buy a STR property in NH as soon as we finalize the paperwork needed, e.g. if we need LLC.
- My husband is a stay-at-home spouse and will handle much of the day-to-day operations for our short-term rental.
- We’re planning to ensure we materially participate (within a 2-hour radius of the property) so that the rental could be treated as non-passive.
- We’d like guidance on whether to hold our property in an LLC or simply in our personal names, including any tax advantages/disadvantages, liability considerations, and possible effects on financing.
I want to fully understand the trade-offs between both approaches. We’re also curious about local or state considerations that might apply.
If you have direct, in-depth experience advising clients with short-term rentals (and especially with the nuances of material participation and entity choice), please reach out. I'd love to discuss working together and appreciate any insights you can share.
Thank you!
Audrey
