While short-term rentals (Airbnb, Vrbo, etc.) in the U.S. can offer tax advantages, the rules change when the property is outside the country.

I know the tax hit isn’t ideal, but I’m wondering if the long-term cash flow benefits outweigh the opportunity cost.

@Brad Kanouse Using Traditional IRA funds for an investment property typically incurs income tax and a 10% penalty if you’re under 59½, as investment properties don’t qualify for tax exemptions.

As long as you filed joint taxes you would be fine.)

I'm also a realtor. with the real estate professional tax status.

This means the $80K LLC profit is subject to both ordinary income tax and self-employment tax (15.3%), regardless of your high W-2 income or capital loss carryover.

The higher the rent, the better for tax purposes.

For tax purposes, it's considered a reimbursement for property damage.

@Devakumar Sai Chinthala There are income limitations for passive losses, you should check with your tax professional.What will the property taxes increase to after you buy the property?

If the LLC is a single member, it is filed on your personal tax return.