We have been swept by the influencers touting the benefits of cost seg, so we are wondering how come nobody ever mentioned that it might not fully appy during the first year in service.You relied on two almost equally awful sources of information: influencers and IRS publications.

And while appreciation can be a risky game to play on its own, in certain markets, it’s hard to ignore its long-term benefits if you’re holding for the right reasons.

Selling an investment property can result in significant capital gains taxes.

Networking with other investors and attending local meetups can help you gain advice and opportunities.

There are good tax benefits, but you should really decide on whether you want to own and operate a business that requires as much upkeep as STR before exploring it further.

I recommend making an LLC since there is so much benefits to it.

Plus to realize that appreciation it costs you money to sell, refinance, and potentially pay taxes on the gain. 

I have seen instances where a 1031 exchange was not required such as1) The overall gain from the sale of the investment property was very small or even negative2) The taxpayer had enough passive loss carryforwards to offset the gain.A 1031 exchange is a very powerful tool put it has to make sense before going forward.

I have suspended Passive Activity loss that would reduce the gain, but not eliminate the gain from tax POV.

There are benefits to using the LLC, holding company, or trust, but they all come with costs and add complexity to your life that is often unwarranted.