All Forum Posts by: Nancy Bachety

I like to think we’re all learned host owners. I like the way it sounds. 

Yes. Just as @Michael Baum does in his traditional IRA, you can do that in your Roth IRA with your after tax income, up to the limit, and depending on your total income.

Reminds me of the ‘80’s on Dune Road in Southampton. The homeowner adorned his front yard with his former small plane. Guaranteed he didn’t rent either one out. 
@Collin Hays Great sense of humor. I’d be disappointed if the plane I slept I didn’t have the original gauges in them. 

@Account Closed That’s funny because the opposite is true: I assume nothing. 
My tax professional read the IRS regulations and examined case law. He also assumes nothing. While it’s becoming more common to audit tax filers on this particular aspect of the tax code it is still not too common or understood by even the seasoned IRS auditors, let alone the new 89,000 employees. 

“But, no worries, since you state "You are absolutely correct" you must have done the research and read the supporting case law and been in tax court to know what they do and don't do. I defer to your brilliance and experience. Will you be doing seminars?”

Yes I did.

Yes I did. 

Called out on it by IRS and NY State Dept of Taxation, provided my documentation and cited the code to both entities, which resulted in avoiding tax court and a reversal of tax liabilities.  In fact, one auditor even told me he was unfamiliar with it until he read my references. 

My husband thinks I am both brilliant and experienced.

No.

Said gently:)

Wow, that’s news to us. 
What's the difference between STR property owners and investors , @Jude Cineas? 

@Gian Jr, III

You are absolutely correct. You won’t end up in tax court but if you do, you would win based on everything you cited about material participation as long as you have a time and activity log that shows your tasks and provide a guest list that shows the number of nights your guests stay (easily found on the various platforms). 
Stay the course. Even if you have a cpa who isn’t well-versed, she’d be enlightened once she reads the irs tax regulations cited above. 
Good luck. You’re doing the right thing, trust but verify.

I don’t know your particulars but schedule e and no substantial services is common with self managers and very tax efficient. Material participation is critical if you have decent w2 income.

They may be collecting on behalf of a forgot about municipality (county, city, village, state) besides the dominant municipality. 

I had a guest last year inquire if our cabin came with free tickets. Now I understand. No. And I won’t discount your rate either. Next.

Forget the class you took and take advantage of this thread. You heard from the best. Self manage. And yes, your cleaners are pass through expenses. You got this if you made it this far.