@Tom Rairdon If you’ve owned your short-term rental (STR) for over a year, it likely qualifies for long-term capital gains (LTCG) treatment, taxed at lower rates (0%-20%) compared to your 33% ordinary income bracket.

The house was spacious enough for her, but not for accommodating other relatives who might want to live with her.

My mom still lives in the home as my tenant.

I'm a Realtor with a couple properties listed in Boise, ID and a neighboring town for my investor/client that are currently rented as co-living or rent-by-the-room and getting killer income. (7.3% - 9.5% Cap rate) So far, every inquiry has been baffled by the concept of co-living or rent-by-the-room and immediately ask if they're being run as a halfway-house (which they are not).

My airbnb posting just went live yesterday. 

It’s generally better to pay taxes, especially if it’s preferential LTCG treatment and make a sound investment with cash that remains than defer and make poor investment decisions. 

However, components of a central HVAC system in a residential building, including furnaces and condensers, are NOT eligible for this treatment and must be slowly depreciated over 27.5 years (39 years for STRs).

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $140,000

Cash invested: $24,000

Sale price: $220,000

I knew from the start that I was going to buy this propert...

Have a client that does sober living homes here in B/CS.

Hey Dan, renting to a sober living operator can be a great idea.