In this episode of the STR Data Lab, Jamie Lane hosts a discussion with Ryan Bakke about recent changes in tax law from the Big Beautiful Bill and their implications for short-term rental investors. Ryan, who has extensive experience helping investors save on taxes, explains his journey into the short-term rental and real estate tax niche.
The conversation highlights recent tax law changes and their potential impact on investment strategies. Key changes discussed include bonus depreciation, its implementation, and how it can impact short-term rental investors. Ryan explains the concept of bonus depreciation, providing examples of potential tax savings and how these can be reinvested to grow initial investments. He also talks about the significance of qualifying for different depreciation schedules and cost segregation for leveraging tax benefits. Another major topic is the Qualified Business Income (QBI) deduction, its permanency, and who qualifies for it, especially in the context of short-term rental investments vs. long-term rentals. Ryan elaborates on the qualifying rules for offsetting W-2 income with short-term rental investments, including the 7-day use test and additional hour requirements.
He also discusses potential economic benefits, such as saving on personal car interest and employer-paid student loans. The introduction of new financial accounts for children's savings and the broader economic effects of these tax changes are touched upon. Throughout, Ryan shares practical advice for investors on how to navigate these changes and maximize their tax savings. The session concludes with Ryan's recommendations for additional resources and ways to stay informed about tax strategies for real estate.
You don’t want to miss this episode!
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Episode 142
