All Forum Posts by: Matt Doepke

Thanks everyone, appreciate you confirming what I suspected.

Hi BP! Thanks in advance for your insights - I just purchased my first real estate investment property a couple months ago (2023) and looking for some tax guidance. 

I purchased a single family home under my LLC and have been renovating it to be STR-ready (weeks away before we launch!). I have not rented it out to anyone yet. I have records of all expenses the business has contributed to the reno.

I am curious what tax benefits I can claim, if any, specifically:

1. There is no income generation to report in 2023, but can the business claim any losses?

2. Can I depreciate the property despite not being rented?

3. Do I need to file a Schedule C/E?

Much appreciated for anyone's knowledge on this topic!

Thanks for the replies! More details below. Again, looking for anything that could help amend local legislation in favor of STR (I don't plan to sit this out!). Any ideas?? Aside from tax benefits and tourism bolstering local businesses what are other benefits to the city?

Shorewood, MN shares access to Lake Minnetonka, a large recreational lake 15 mi west of Minneapolis. Shorewood is the only city on the lake that prohibits STRs (as of 2017). Legislation came about because a couple of homes were rented out for large noisy parties. Can't blame the neighbors for complaining, but these few instances laid the groundwork for STR ordinance and halting STR market in the community.

Currently working with the city council to get the meeting minutes on the discussion points.

The city I live in recently passed a law prohibiting short term rentals. This is hugely disappointing as my wife and I recently updated our lower level to rent out on AirBNB.

Before I have the conversations with city council members and the mayor I'm looking to build my case to support short term rentals within our community. Does anyone in the BP world have resources, suggestions, or examples I could use that would be helpful in overturning STR regulations?

Thanks so much!

Matt