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What is the short-term rental tax loophole? (Cost segregations EXPLAINED) 

Robuilt
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30 апр 2023

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Комментарии : 158   
@nicholasbreed3341
@nicholasbreed3341 Год назад
This is great info Rob! Thank you! Blows my mind how complex the tax code is!
@Dimrain13
@Dimrain13 Год назад
Talked with a CPA for the first time last year and he asked about 5 times if I had ever rented out the property one night. I was able to offset losses for fixing and flipping costs and the hard money payments to reduce from 100k to 60k taxable. Next year I will likely not be paying any tax thanks to my CPA.
@TopGoodBoi
@TopGoodBoi Год назад
Hey Dimrain can I reach out have a question about this. Thanks!
@colleenpelliccia-lavin801
@colleenpelliccia-lavin801 8 месяцев назад
Nice! Would you mind sharing your CPA's info?
@aaron115651
@aaron115651 5 месяцев назад
Would love your cpa's info!
@rachelvillwock4556
@rachelvillwock4556 Год назад
You are the best Rob! Thank you for all of the wonderful information you share
@SAMCHICLA
@SAMCHICLA Год назад
Thank you for providing us with such a valuable information!
@OneRentalAYear
@OneRentalAYear 11 месяцев назад
Great guy. Talked with him at Host Con last year! Good information! Thanks Rob.
@jeremybrownnorthidahoreale5490
@jeremybrownnorthidahoreale5490 5 месяцев назад
This is great info! I've shared this video with all of my STR investor clients, and I'm surprised how many had no clue as well as their accountants! Thanks, Rob! You Rock!!
@anomaly_cpa
@anomaly_cpa 4 месяца назад
Not surprising! We've niched STRs for years and almost all incoming investors have one of the following mistakes on their returns (including Big 4 prepared returns): 1) Schedule C vs Sch E 2) 27.5 years vs 39 years 3) Classifcation as a residential rental vs vacation/transient. Regs Section 1.469 is something all RE investors (or their CPAs) should know backwards and forwards!
@jiriesdawaherrealestate
@jiriesdawaherrealestate Год назад
This should be put out more! People will love real estate investing even more when they learn the other 'loopholes' in this industry. This is very well put.👌
@laurieclarkson9180
@laurieclarkson9180 Год назад
Hi Rob! Found you from your interview on Erika's channel. This subject doesn't apply to me YET but I found this interview with Mitchell fascinating as well as your interview with Erika. Thank you for all of this great information!
@77Tadams
@77Tadams Год назад
Rob. You are so humble just putting your glory shot up there along with Grant and Tony. Cheers to that. 6:40
@ih458
@ih458 Год назад
😂 hahaha, how did I miss that!
@Veronica-tk9rl
@Veronica-tk9rl Год назад
If ever there was a job I am confident I could NEVER do, it's being an accountant. WOW... my brain becomes scrambled trying to piece this together.
@jeffmangold
@jeffmangold Год назад
So helpful 🙌🏼
@mrs.t333
@mrs.t333 4 месяца назад
Dudes. This is such a great video!
@ih458
@ih458 Год назад
Just an FYI... you can still amend tax returns for 2019 for additional refunds. Since the due date was pushed to 7/15/2020... you have the full 3 years to have your 1040x postmarked BY 7/15/2023 for a REFUND.
@andybethel
@andybethel Год назад
I'm literally filling out my cost seg estimate request form as you come out with this video...crazy timing
@Robuilt
@Robuilt Год назад
How much was it going to cost?
@andybethel
@andybethel Год назад
@@Robuilt approx $4,500 for our 900sf A-frame cabin
@nikgarcia2823
@nikgarcia2823 Год назад
It's not a loophole, it's an incentive😊
@radianthealing1994
@radianthealing1994 10 месяцев назад
Good re-word!!
@marcamaral7870
@marcamaral7870 Год назад
Best video I’ve watch 2023
@fallen546
@fallen546 Год назад
Combine this with an opportunity zone business. Normally you would need to pay recapture tax when you sell a depreciated property. With an OZB after 10 years there is no recapture tax, and no capital gains. Mind blowing.
@metalrooves3651
@metalrooves3651 4 месяца назад
WHAT is OZB?
@mattfitzgerald2597
@mattfitzgerald2597 Год назад
Mitchell needs a mustache. Also awesome information. Thinking about ordering the report.
@user-zw8re2io4t
@user-zw8re2io4t Год назад
Hey Rob! Thanks for making such great content. Can I take advantage of this if I am building a cottage on the same parcel as my primary residence?
@tax-modern
@tax-modern 2 месяца назад
Yes. As long as it's a separate "dwelling", including a unit in a duplex etc, then it can qualify.
@miguelc7659
@miguelc7659 2 месяца назад
Thank you for saving me money my personal taxes were killing me
@elvispresley3234
@elvispresley3234 Год назад
It is called accelerated depreciation. It has been around for yrs.
@user-xn4pk6gn5n
@user-xn4pk6gn5n 4 месяца назад
Hi Rob, would talk about insurance, terms and conditions best practices for direct bookings?
@JJFair434
@JJFair434 Год назад
Let’s gooooooo!
@tomcapo2682
@tomcapo2682 Год назад
I have a mixed use, long term commerical rental with two short term Airbnb apartments above the office. Can you put in info for the entire building or just the apartment sections?
@tarra1371
@tarra1371 8 месяцев назад
Saludos! Loved this video... wondering if anyone has any information about the benefits of this while running a STR in Puerto Rico?
@katenolte4840
@katenolte4840 3 месяца назад
Hi Rob, Thank you for all of your great info on this!! I also tried getting more info from the website in your description, but when I entered my email to have it verified etc I never received anything. Anyway, I have a short term rental and my accountant told me today that in order to utilize bonus depreciation the property would have had to be a rental before. This doesn't make sense to me. I bought the house toward the end of 2022, renovated it (new flooring, new bathroom vanities and toilets, new paint, new window coverings....) and yet we aren't able to do bonus depreciation because it wasn't a rental prior to us owning it???? Any input on that? TIA
@Tonnyy11
@Tonnyy11 Год назад
Best part of the video… the “Mega wealthy” pic of you 😎😂
@unconscioususa8903
@unconscioususa8903 7 месяцев назад
Can I cost seg my 1 STR as a disabled vet that pays no taxes on$70000 a year, but now in October started STR.
@markhoffmantrades
@markhoffmantrades 7 месяцев назад
Wow I need this I paid 50k in w2 taxes this year
@metalrooves3651
@metalrooves3651 4 месяца назад
YOU WILL need to make a couple air BNBs this wont be easy..you must actually DO SOMETHING..
@cameronbiggs4610
@cameronbiggs4610 Год назад
Great content, thanks gents. I wondered how long does the property have to be an STR for me to use this strategy? 1 yr?
@rachelvillwock4556
@rachelvillwock4556 Год назад
A great question
@tax-modern
@tax-modern 11 месяцев назад
The average stay for the year has to be 7 days or less, so if you have any long term stays the math probably won't work out. If it's a new rental that you just put on the rental market for the first time, there isn't a particular minimum but having 2-3 stays at least for the tax year is recommended. I'm a tax preparer specializing in working with rental property investors.
@tedmassad3147
@tedmassad3147 Год назад
I own a cost segment company and teach my own students how to go from w2 to a real estate professional like me and the clients I've helped save up to hundreds of thousands in taxes.
@andrewcaven5801
@andrewcaven5801 Год назад
Hey Rob - thank you for putting these resources out there! My question is if someone does use a management company, is the company able to use the STR loophole in any way?
@Toopain2125
@Toopain2125 Год назад
Was wondering that too or could us as the owner capitalize on it
@tax-modern
@tax-modern 11 месяцев назад
No, it only applies to you as the owner. And you (or your spouse) have to "materially participate" in the rental yourself. Hours spent by people or companies you hire don't count towards that. It's possible to still qualify if you have a property manager, but you would have to log 100-500 hours/year on it, which most people don't when they have a property manager. I'm a tax professional specializing in doing taxes for rental owners (located in Austin TX).
@maxdeangoldstein
@maxdeangoldstein 10 месяцев назад
If you purchased a vacation house, renovated it and used it personally for a year, but are now going to have it as a short term rental full time, can you deduct all the renovation costs from that first year? @@tax-modern
@tax-modern
@tax-modern 10 месяцев назад
​@@maxdeangoldstein You do get some tax benefit from those renovation costs. The renovation costs can be added to your basis and it's part of the building cost that you get to depreciate over a number of years (generally 39 years for short term rentals). In other words, the renovations reduce your taxable income from the rental a little bit each year. The renovations cost also can reduce your capital gains if you later sell the property. By the way, calculating your basis for depreciation is a somewhat complicated subject, and even if you do your own taxes most years, I would recommend a tax professional specializing in real estate to do your taxes that first year to get your depreciation set correctly.
@dat9152
@dat9152 11 месяцев назад
lets say a husband and wife, both W2 earners, bring in 200K a year and buy a 500K SRT. Using a cost segregation report gets them 100K-150K depreciation year 1. They are allowed to deduct that 100-150K against the 200K and just pay taxes against the balance? Later set up a trust so when they pass away their children inherit the properties and only have to pay taxes on what the property is/was worth when the parents passed away not the original purchase price paid by the parents? Am I understanding all this correctly?
@stephanievalencia7329
@stephanievalencia7329 Год назад
I AirBNB my guesthouse - think land hack. Has anyone done this with a property that is their home?
@MrPhilieberman
@MrPhilieberman Год назад
Any recommendations on a good CPA that can help you with this stuff?
@jjohn662
@jjohn662 6 месяцев назад
Is “401k income” considered “ordinary income, like W2“ such that STR short term rental depreciation losses can offset 401k income withdrawals?
@YourMom-vt3ob
@YourMom-vt3ob 11 месяцев назад
Hey Rob, do you have a CPA you can recommend?
@marandacarr2200
@marandacarr2200 Год назад
Can you talk about California tax laws in regards to bonus depreciation for cost segregation. It is my understanding that California does not conform to bonus depreciation. In California would it be financially beneficial to justify the cost of a cost segregation study?
@tax-modern
@tax-modern 11 месяцев назад
Yes, you would still get the same tax benefit for your federal taxes. But your CA state taxes would remain the same.
@BryanBaecker
@BryanBaecker 7 месяцев назад
Can you file amended returns to take advantage of the STR loophole retroactively? If so, how far can you go back?
@Thenoobestgirl
@Thenoobestgirl Год назад
*"IRS OPEN UP!"*
@lauriekline8655
@lauriekline8655 Год назад
Mind blown
@dougdawson7375
@dougdawson7375 2 месяца назад
What if I own my own business, nothing to do with STR or real estate? I don't get a W2 from myself.
@IrinaZamanova
@IrinaZamanova 8 месяцев назад
It's for Bed and Breakfasts. As in - you provide EXTRAORDINARY services..and not just rent for 7 days or less.. am i right?
@carlosvargasbatman
@carlosvargasbatman Год назад
I love paying taxes and hate making money. Said no one ever 😂
@maxdeangoldstein
@maxdeangoldstein 10 месяцев назад
If you purchased a vacation house, renovated it and used it personally for a year, but are now going to have it as a short term rental full time, can you deduct all the renovation costs from that first year?
@jamescrenshaw5097
@jamescrenshaw5097 8 месяцев назад
When you "place the building in service" as a short-term rental, you determine what is depreciable at that time. That would include the rehab costs from the first year
@EliasB100
@EliasB100 Год назад
My question is: what if I want to turn my residence that I purchased 3 years ago into an Airbnb, what can I write off?
@tax-modern
@tax-modern 11 месяцев назад
Once it is available as a rental you can start using depreciation to subtract a fraction of the cost of the house from your rental income each year. Pretty much any other expenses you incur once it's a rental are also expenses you can deduct (utilities, property taxes, insurance, supplies, etc.).
@seandavidkarafin
@seandavidkarafin 10 месяцев назад
What happens if you take the 80% bonus depression in 2023, then convert the use to a mid-term or long-term rental in 2024? How does that impact your tax bill in 2024?
@anomaly_cpa
@anomaly_cpa 4 месяца назад
If you convert, there is no claw back in the year of conversion.
@lukewo5067
@lukewo5067 Год назад
Quick question. New home build- you would be able to depreciate Construction costs or appraised value?
@tax-modern
@tax-modern 11 месяцев назад
If you build a house and immediately put it into service as a rental property, your bases for depreciation would be the cost of the construction (plus acquisition costs, etc.). You can't depreciate the land (so that means the land can't be used as an expense against your rental income). This is unrelated to bonus depreciation and the STR loophole, I'm just talking about the regular depreciation.
@DagrtOne
@DagrtOne Год назад
Wait a minute, hold your horses. Why do you only have 250,000 subscribers?! that means people are not following you. That means more opportunities for me.😮 but seriously you’re doing a great job. I find your videos, educational, informative, and entertaining.
@Brentwisener
@Brentwisener 3 месяца назад
Hey Rob! I’m doing this cost seg now with Form 3115 from airbnbs purchased in 2022 and 2020, and can’t find out where in TurboTax or schedule C to enter the catch up depreciation? Is this extra catch up depreciation something I enter as a miscellaneous expense on schedule C, and then also keep the normal depreciation schedule?
@jzawahri
@jzawahri 7 месяцев назад
Hi Rob, Would I be able to claim Real Estate Professional Status (REPS) to take advantage of the STR loophole (use the losses to offset W2 income) if I made the rental property available in December and had a couple of 2-day renters? knowing that I cannot spend 100 hours in 2023 but have materially participated. In other words, would I be able to make the most of the cost segregation report for the 2023 W2?
@anomaly_cpa
@anomaly_cpa 4 месяца назад
REPS and STR Strategy are 2 different concepts. Hours towards REPS do not count towards your STR (by definition, a STR is nonresidential). You can indeed use an alternative Material Participation test (there are 7)
@alexmmm1889
@alexmmm1889 Месяц назад
Whats about 1099 Income.. Can you write it off with STR.. or only W2???
@michaelmainini2476
@michaelmainini2476 9 месяцев назад
When would the deferred taxes have to be paid?
@Robuilt
@Robuilt 9 месяцев назад
When you sell the property (unless you 1031 the proceeds).
@user-ej1od5yg6c
@user-ej1od5yg6c 10 месяцев назад
Can you take advantage of this cost segregation report savings if you were gifted a home and are using it as an Airbnb?
@anomaly_cpa
@anomaly_cpa 4 месяца назад
Your basis would be the adjusted basis of the person who gifted you the asset...but yes, you could
@OccultemTe
@OccultemTe 9 месяцев назад
How long can you personally stay at your short-term rental and still be able to deduct all the expenses?
@sylviasanchez5868
@sylviasanchez5868 5 месяцев назад
Not sure if you’ve found your answer already but I had the same question. Did some research and am reading IRS publication 527. Currently there is a draft form “for use in preparing 2023 returns” Hope this helps!
@MrHamlet
@MrHamlet 3 месяца назад
Does watching Robuilt videos count as materially participating since I'm learning about the STR business??? :)
@Robuilt
@Robuilt 3 месяца назад
Hahaha I wish, I wish.
@jeffreyhanes1066
@jeffreyhanes1066 Год назад
how far back can you go on your short term rental purchase?
@ih458
@ih458 Год назад
2019... due by 7/15/23
@lorisyme2756
@lorisyme2756 3 месяца назад
Never found your form below. I have a house hack and made about 22k and spent about 10 k on upgrades remodels . What would it cost and would it be worth it?
@craigwat8592
@craigwat8592 11 месяцев назад
Dont you still win some if your tax rate was more than 25% the year you depreciatiled since recapture tax on depreciation maxed at 25% tax rate?
@craigwat8592
@craigwat8592 11 месяцев назад
If u have a mix of long term and short-term rentals, can the depreciation be active across your entire portfolio or just the short term rentals?
@jamescrenshaw5097
@jamescrenshaw5097 8 месяцев назад
The STR "loophole" applies only to those properties that meet the short-term definition. In addition to the under 7 days average stay mentioned in the video, it could also be under 30 days average if you provide substantial hotel-like services to guests. The long-term rentals can qualify if you meet real estate professional status.
@daymackgaming6903
@daymackgaming6903 Год назад
This is for the ppl that own STR, what about subletting through my LLC?
@tax-modern
@tax-modern 11 месяцев назад
Do you mean as in rental arbitrage?
@Corvette0430
@Corvette0430 Год назад
I read the IRS 925 tax form you mentioned. Was excited to have this option. However, on page 4 it lists the Phase Out Rule. These are of course modified adjusted gross incomes: $25k Max 100k or less, $12k Max $150K or less and nothing over $150k 😢 Guess if you have a W-2 and you are a true high earner you need to max out your 401k and all other pre-tax items to get your income down.
@TheRulersBack1
@TheRulersBack1 Год назад
hey so are you saying that under no circumstances can you implement this if you earn over $150K in w-2 income?
@Corvette0430
@Corvette0430 Год назад
@@TheRulersBack1 Yes the 25k unless you can get your AGI under $150k
@tax-modern
@tax-modern 11 месяцев назад
The $25k exception you're mentioning is unrelated to the "STR loophole". If your income is low enough to use that $25k exception, you can use that instead and not need the STR loophole. The STR loophole method doesn't have an income limit, it can be used regardless of your income level. There are 4 ways you can make use of rental losses, and the $25k exception and the STR loophole are two of them. (I'm a tax professional located in Austin TX with a specialty doing taxes for real estate investors.)
@jamescrenshaw5097
@jamescrenshaw5097 8 месяцев назад
Right on!@@tax-modern
@donnasides6884
@donnasides6884 5 месяцев назад
@@tax-modern thank you for clarifying, what are the other two?
@thewoodworkingbusinesscoach
@thewoodworkingbusinesscoach 9 месяцев назад
Okay - so my CPA is saying that if I classify my ABNB income as "active income" to take advantage of this, then I have to pay unemployment taxes on any income from my abnb's. Is this the case?? ?
@anomaly_cpa
@anomaly_cpa 4 месяца назад
Incorrect, unless you provide hotel like services known as Substantial Services. It is frustrating many CPAs are not aware of this (1 in 2 returns we review have this error for STR investors). There is a great IRS CCA (IRS legal) opinion on this in 2021 you can look up as well.
@mcvgunner
@mcvgunner 9 месяцев назад
so there’s no way to take advantage of this if you use a property manager? would love to do this but my STR is out of state
@anomaly_cpa
@anomaly_cpa 4 месяца назад
Yes, but you need to plan carefully
@rachelanderson4663
@rachelanderson4663 7 месяцев назад
Hi there. I'm not a 'high income earner' (I work for the local public school system) and I purchased my first short term rental two months ago. I spoke to a local CPA and she basically told me that doing a cost seg would be a waist of money for me...Would I not get the benefit from it since my income isn't particularly high and therefore I don't pay 'a lot' in taxes?
@anomaly_cpa
@anomaly_cpa 4 месяца назад
Depends. Time Value Money usually makes it worth it. If she is not versed in STRs, she may be thinking your losses would be passive. Most of our single STR investors will cost seg, unless they plan on holding for a short period of time.
@davidhernandez1866
@davidhernandez1866 6 месяцев назад
Is the beta still available? I would like to get a cost seg analysis for my first STR
@Robuilt
@Robuilt 6 месяцев назад
Yes, it is!
@jenvu19
@jenvu19 3 месяца назад
Can you do a cost segregation on a condo buried down in the Maui fires? :(
@TopGoodBoi
@TopGoodBoi Год назад
How does this work if you live in the STR and rent it out for only 45 days of the year because of local restrictions?
@tax-modern
@tax-modern 11 месяцев назад
No. If you use the property for personal use more than 10% of the time then you can't deduct more losses than the income it generates, so the STR loophole wouldn't work.
@Sayfeijai
@Sayfeijai Год назад
Will this loophole work for medium term rentals ?
@Teltic2007
@Teltic2007 Год назад
no. must be averge of 7 days or less
@quakykhoa
@quakykhoa Год назад
Hi Rob, long time watcher, first time commentor. Would the cost segregation work if i plan to house hack 4 out of the 5 rooms in my house (i stay in the master bedroom). The date of airbnb service will start June 2023. I am in the process of closing at the moment. I will be your guinea pig for the beta✋. Thanks for the response in advance!
@ih458
@ih458 Год назад
Did your beta form go through? I clicked to read the terms & conditions and when I clicked back it won't finalize.
@Teltic2007
@Teltic2007 Год назад
I'm intereted if this cost segregation works if you live in a room and rent the other out on airbnb.
@athenaedison-lahm3874
@athenaedison-lahm3874 Год назад
Beta guinea pig here, if I have questions on filling out the form is there someone I can ask? Not sure uf i am filling it out correctly ine pages, 2 and 5.
@ih458
@ih458 Год назад
My form wouldn't finalize after reading the terms & conditions...
@seanengland2545
@seanengland2545 7 месяцев назад
If I just closed on a home in November, can I still get the benefits from a cost segregation report on my 2023 taxes?
@Robuilt
@Robuilt 7 месяцев назад
So long as you place the property in service in 2023.
@cyagurl
@cyagurl Год назад
So if I have a property manager and make $200k in wages, I'm SOL on this loophole? Isn't paying them a business expense (my STR is an LLC)...any tax benefits to that? (And I swear keeping up my IG account takes me more than 100 mental hours/year lol)
@tax-modern
@tax-modern 11 месяцев назад
Your amount of income isn't a factor in qualifying for the STR loophole. Having the property in an LLC also isn't a factor (a single member LLC is always disregarded for tax purposes). But having a property manager may disqualify you, or at least it's unlikely that you put in enough hours of your own time to qualify as materially participating.
@endlesssun1
@endlesssun1 Год назад
Does this work on a high rise condo? Also, can these savings offset capital gains from the sale of stocks?
@tax-modern
@tax-modern 11 месяцев назад
Yes if you own the condo the same thing still applies. Yes, if you're using the "STR loophole" the savings can offset your regular income including capital gains, or job/business income. (I'm a tax professional specializing in doing taxes for real estate investors.)
@endlesssun1
@endlesssun1 5 месяцев назад
⁠​⁠​⁠@@tax-modernWe have the one condo. Bought in 2022, placed in service 2023. Fairly simple w2 income. Are you taking on new clients?
@jcorona5457
@jcorona5457 Год назад
Wait… please be a way for me to lower taxes on STR
@Robuilt
@Robuilt Год назад
If you self-manage, then yes ;)
@user-xl1xf3th2u
@user-xl1xf3th2u 20 дней назад
Yeah this is good until they change the tax code.
@chris2884
@chris2884 Год назад
How many nights do you need to Airbnb to qualify the property?
@tax-modern
@tax-modern 11 месяцев назад
The average stay for the year has to be 7 days or less, so if you have any long term stays the math probably won't work out. If it's a new rental that you just put on the rental market for the first time, there isn't a particular minimum but having 2-3 stays at least for the tax year is recommended. (I'm a tax professional.)
@andrewchristian6989
@andrewchristian6989 Год назад
Does this work only with a standalone rental? For instance, we rent out the basement of our primary residence.
@EE-re3nr
@EE-re3nr Год назад
Following 👀 same question!
@TheCountryCouponer
@TheCountryCouponer 10 месяцев назад
I have no idea, I’m not a tax professional, but I would imagine if you could get your state or county to dime as an apartment and it has its own address appt A. It meets all of the housing requirements (bathroom, kitchen, fire exits, exterior entrance) I think that is your loophole there!
@andrewchristian6989
@andrewchristian6989 10 месяцев назад
@@TheCountryCouponerawesome thanks!
@tredkar
@tredkar 4 месяца назад
Can I apply bonus depreciation on foreign STR?
@anomaly_cpa
@anomaly_cpa 4 месяца назад
Nope. Unfortunately you cannot use accelerated depreciation on a foreign asset
@amygibson9301
@amygibson9301 Год назад
Do I need a cost seg for all properties being depreciated? Is there a min requirements in time frame or income for STR?
@tax-modern
@tax-modern 11 месяцев назад
Each property is generally handled separately so you can do it to any ones you choose. About the time frame, do you mean does it have to be an STR for a certain length of time? The average stay for the year has to be 7 days or less, so if you have any long term stays the math probably won't work out. If it's a new rental that you just put on the rental market for the first time, there isn't a particular minimum but having 2-3 stays at least for the tax year is recommended. I'm a tax preparer specializing in working with rental property investors.
@amygibson9301
@amygibson9301 11 месяцев назад
@@tax-modern thank you for taking the time to answer, very helpful! Weighing arbitrage vs STR on 1b/1b in primary to gain pro status since I have a complete gut BRRRR in escrow that could benefit from cost seg. In that case only the BRRRR would have acc depreciation, or should I cost seg LTR purchased in 2021 as well?
@amygibson9301
@amygibson9301 11 месяцев назад
@@tax-modern I could STR the BRRRR this year if necessary but want to LTR next year. I could buy STR to make this work but do I have to buy/ rent this year or can I buy next year and retro?
@tax-modern
@tax-modern 11 месяцев назад
@@amygibson9301 It sounds like you have a lot going on and I don't think I can give you a definitive answer from that quick summary of your situation, I would need to understand some of the specifics better.
@lydiapatelll
@lydiapatelll Год назад
100% the case for me in high income tax bracket. Make sure you’re documenting the material participation hours especially if you have a cleaner spending significant time there.
@vkumra
@vkumra Год назад
When you document, do you just put hours, or do you put what your hours were spent doing? I do both, but do we need to?
@lydiapatelll
@lydiapatelll Год назад
@@vkumra I also do both, my thought is in case someone asks during an audit, I have enough info to answer their questions. But i would be curious if someone else knows to what detail we have to document these things!
@OccultemTe
@OccultemTe 9 месяцев назад
He looks like an accountant. Not Rob, the accountant looking guy in blue.
@rafaelramirez9132
@rafaelramirez9132 8 месяцев назад
Does this work for STRs abroad? Mexico to be specific?
@juanarosemena7090
@juanarosemena7090 7 месяцев назад
I have the same question. I've spoken to several firms who do cost segregation in the US but none so far seem to do it on international properties
@anomaly_cpa
@anomaly_cpa 4 месяца назад
@@juanarosemena7090 you can absolutely perform a cost seg but you CANNOT use accelerated depreciation. For example, you could use a cost seg to accelerate a portion of a 39 year asset to 5, 7, or 15 years but you can't use Bonus (168K)
@andygrether5549
@andygrether5549 11 месяцев назад
Does it work for medium term rentals? What if you’re not W2 but self employed???
@tax-modern
@tax-modern 11 месяцев назад
It does work the same for W-2 or self employment/business income. But the STR loophole doesn't work if your average guest stay is greater than 7 days. But you can still use cost segregation (but it may not benefit you depending on your rental's net profit and other factors).
@naureenkhashwji8039
@naureenkhashwji8039 10 месяцев назад
How long does a property need to be an STR to be able to do a cost seg? Say I buy one in October and it’s only an STR till December? Then I do the cost seg and switch it over to MTR?
@tax-modern
@tax-modern 10 месяцев назад
@@naureenkhashwji8039 Just to be clear, the cost segregation study is separate from the STR loophole. You can do the cost seg study with a long term rental, it's just that the STR loophole is what you use to make the cost seg amounts deductible against your non-passive (job) income. You aren’t required to continue using it as a short term rental in later tax years, so you just wouldn’t qualify in those later tax years to deduct more losses. But it’s generally not advisable to try to game the system by doing a few short term rentals on a new property at the end of the year and take the tax deduction and then immediately switch it to long-term. That may be technically allowed if you can make a reasonable claim that you did that for legitimate business reasons, but you may be opening yourself up to scrutiny and potentially a challenge by the IRS if you only have it as an STR for a few months at the end of a year.
@naureenkhashwji8039
@naureenkhashwji8039 10 месяцев назад
@@tax-modern can I DM you? What’s your instagram handle?
@badboyspfly
@badboyspfly 3 месяца назад
i totally got lost when the blond hair dude kept talking . maybe im just stupid
@slin4013
@slin4013 Год назад
And school never taught us any of this 😒
@ih458
@ih458 Год назад
You mean the schools that are funded by the government that are funded by tax payers??? 😂😂😂 they have no incentive to help us not pay taxes.
@tylerrowley5583
@tylerrowley5583 5 месяцев назад
If you push 100% of the depreciation up into a single year, does that mean you can’t use the appreciation deduction for the next 26 years?
@mboudreault01
@mboudreault01 Год назад
sell sell sell
@micon9460
@micon9460 3 месяца назад
I feel bad for the guest...for him to keep his train of thought during all of robs tangents/interruptions
@micon9460
@micon9460 3 месяца назад
Rob in 10months since this video I really hope that you've learned to STOP JUMPING IN AND DISTRACTRATING WHAT PROPLE/GUESTS ARE TRYING TO MAKE A POINT. ITS ANNOYING AND RUDE AF
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