All Forum Posts by: Catherine Javier

@Catherine Javier 

IRS Pub 527 states "Example. You rent a room in your home
that is always available for short-term occupancy by paying customers. You don’t use the
room yourself and you allow only paying customers to use the room. This room is used
solely as a hotel, motel, inn, or similar establishment and isn’t a dwelling unit."

Common areas don't apply. Only if you have a portion not used for anything else and you meet all other rules. You would want to allocate expenses on a sqft. basis.

@Catherine Javier

I don't know a company local to you, but these three experts run their respective cost segregation companies that provide it nationwide:  @Bernard Reisz, @Yonah Weiss, @Julio Gonzalez.

Also, read this post: https://www.biggerpockets.com/forums/51/topics/1075919-five-...

I would reach out to KPKG.

@Ryan Judkins Yes, it's absolutely possible. There's a bit more that goes into it than a cost segregation on an entire home, but it could still be beneficial. I'd recommend getting a free cost/benefit analysis quote from a cost seg company to determine if the tax benefits would outweigh the costs. Do you have real estate professional status?

I would calculate it as such:

Guest 1: 60 Days

Guest 2: 75 Days

Guest 3: 90 Days

Cohort 1: Average stay 75 days

Str Guest 1-5: 4 Days

Str Guest 6-10: 5 Days

Str Guest 11-15: 6 Days

Cohort 2: Average stay 5 Days

Average across 18 total guests: 16.67 days.

@Catherine Javier, there are different ways to calculate that, one of them is to calculate how many days the property was booked out (rented) and divide that by number of reservations, this will give you the average number of days for each reservation

It's not a loophole. It is the IRS regulation. People keep calling it a loophole...

This makes my brain hurt. 

I would talk to your cpa and see what you need to have in STR dates