There are rules to follow!

Hi Michelle, I would check on the rules started by another poster about rules changed for appraisers and basement bedrooms.

@Robert SandovalHave you looked into the rules and laws in CA for what requires a broker's license? 

We purchased a property in early October and are placing it in service this week (mid November).We had intended to run a cost segregation study and try to accelerate depreciation which we can deduct against our W2 (assuming material participation).However, we have been reading through the IRS guidelines (eg publication 946 on Property Depreciation) and there seems to be the concept of "short year" which would mean that we can only deduct ~1.5/12 of a year's worth of depreciation in 2024.Is this correct or are there any different rules for STRs specifically?

Check out FilePlace, where user-created forms are available for free.

Understand the 50% rule.  

STR income isn’t considered passive if you meet material participation rules, allowing STR losses to offset W2 income.

I did see that mentioned in a LinkedIn post actually today, the clawback rule. 

With a 3-5% down FHA loan, I snagged a cozy home in a hot spot, worked from home to play handyman, and created a hedge against the "what-ifs" of life.

If you violate any of these rules you could blow up your IRA or 401k and the IRS could force you to distribute all of the assets in the IRA or 401k.