All Forum Posts by: Kelly O'Keefe

 Yep, just messaged you. It should be in your inbox

 Here is the rule from the IRS regarding length of stay for short term rentals:

As defined by Treasury Regulation Sec. 1.469-1T(e)(3)(ii)(A)

• The average period of customer use is 7 days or less
• The average period of customer use is 30 days or less. (Confusing we know, this means that not only does the customer stay for 7 days or less on avg. they also don't come back multiple times during the year for separate trips and these stays add up to > 30 days -> Trip one: 7 days, Trip two: 7 days, etc.)
• Personal use of the property of 15 days or more OR more than 10% of the total rental days will cause the property to become a residence. Exceeding these thresholds will cause this property to be treated as a primary residence. You won't be able to deduct any losses generated by the property, though the losses can still carry forward. You also must allocate all expenses based on the proportion of time spent, allocating the expenses between your personal deductions and the rental property profit and loss

 I'd be happy to run through the basics with you. We are about to start offering webinars on it. There are also several great posts on the forum  

 I made a tracker based on the IRS audit guide. Its free on our site, but happy to share a link if anyone is interested 

@Ryan Leake Thanks for the great post! One thing I have also seen investors do is have too many personal use days which can have lead to a similar situation as Jackson. Overall I would recommend talking to other investors or professionals  familiar with the strategy and having a solid system for tracking material participation. 

Hi @Peter Matus

I don't have all of the information on your specific situation but that does sound high. I would reexamine your transactions as there is probably more expenses available to you that can reduce your taxes. If you materially participated in the rental this could be another strategy to examine. I would also be curious if it was a big chain tax professional or your personal CPA? 

Another factor that could create the amount owed is if your employer is not withholding enough in taxes and it was not caught until tax season. Your tax pro should be able to tell you exactly why you owe the amount and where the taxes are coming from.

@Samia Moughanni

I am glad it worked out. Did you choose to stay with the company? 

@Julia France

I think having a general CPA is helpful but one of the downsides is they may not be well versed in REI. If you are open to working remote there are a lot of amazing options on this forum. Generally, the location isn't as important as finding a tax professional that is knowledgable. If you are up for working remotely I would recommend messaging a few Pros from this site and setting up a meeting to discuss your needs.

Hi @Andy R.

I am glad you realize expertise is more important than location. There are 20+ Tax Pros on this forum. I would recommend picking a few and setting up brief calls to see the services they offer and what fits your needs. Some talking points could be tax strategy vs. tax preparation, how they charge, and how much assistance you need. Mostly I would highlight what is most important to you and how a CPA will take your portfolio to the next level. 

Best of luck 

@Lor Fara when you say last years taxes, do you mean 2022?