These expenses covered various items such as property taxes, insurance, utilities, and financing costs during the project.Sale Price: Following the renovations, the property was sold for $205,000.

We are interested in making use of the STR tax strategy to offset our W2 income this year (work 100+ hours, average rental less than 7 days, no one else worked more than us).But1) Can we only keep it as short-term rental for 2024 collecting minimal STR rents and convert it to LTR in the following year (2025).

There are already risks, don't make legal and tax issues be another risk.

Judicial,Collateral,Unsecured,Secured,Seller,Syndication ~ confirmed Mortgage Brokers (sophistication, in lending terms) "15% ROI Margins" ~ confirmed ROI unknown tho…Tax attorney(Roth,Judicial, Sophistication) "10% ROI"  Unknown*Accountants (how much and where Terms infrastructure legalities) 7% ROI Unknown*Mortgage broker (lending acquisition all major lenders ,TD,RBC…….

Then hope the rental losses help with it comes time for tax season.2) Double down on the STR and theme the house (if it isn't already). 

@Artur A. you're welcome.The general rule is you pay taxes in both Mexico and the US according to each country's tax code and then, courtesy of the treaty between the two countries for the avoidance of double taxation, you'd credit the taxes you paid in Mexico against your US taxes (related to the property only).If you invest in your own name or through a bank trust (fideicomiso), OTAs will withhold the tax to be paid to Mexico as a percentage of the gross income.

I am the co-host of a tax planning and strategy podcast.

I am interested in investing in Tax Deeds, but I'm skeptical of the technicalities of it that I'm uneducated about.

Setting up a separate bank account is also easy and free in many situations, this will allow you to keep things clean especially at tax time.

I have heard from some people, but have not gotten a definitive answer, that going through a deconversion process can substantially lower the yearly property taxes for the property.