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STR 04: How a Short-Term Rental Investment Can Result in BIG Tax Savings

Tax Smart Real Estate Investors Podcast

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The Cost-Segregation Study for Short-Term Rental Owners

You have to meet one of these tests substantially all or 100 hours and more than anyone else. And if you are materially participating, your rental losses are going to be non-passive from this short-term rental activity. We also have to get a cost-segregation study done so we can immediately expense anywhere between 20 to 25% of the purchase price thanks to 100% bonus depreciation. So what does this mean? Let's walk through an example that I walked through with my friend the other night.

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