334. Grouping Elections: Why Your STR Doesn’t Belong with Your LTRs

16 snips

Jul 2, 2025

This discussion dives into the complexities of moving short-term rentals into LLCs while ensuring personal ownership. It sheds light on why short-term rentals shouldn’t be mixed with long-term ones for tax purposes. The hosts tackle what counts as 'placed in service' when tenants aren't paying rent and clarify how to maximize bonus depreciation on recent purchases. With practical insights, they help demystify essential tax strategies for savvy real estate investors.

Ask episode

AI Snips

Chapters

Transcript

Episode notes

ADVICE

Moving STR to LLC Guidance

To move a short-term rental (STR) property to an LLC, transfer the deed to the LLC with a quick claim deed.
Notify your lender to avoid triggering due-on-sale clauses when changing ownership with a mortgage.

INSIGHT

STRs Excluded from Dash-9 Grouping

Short-term rentals cannot be included in the Dash-9 grouping election for real estate professional status.
They must be grouped separately under the Dash-4 election for short-term rentals specifically.

ADVICE

Placed in Service Despite No Rent

A rental property is considered placed in service even if tenants are not paying rent but occupying it.
Costs for renovations must be evaluated under tangible property regulations for repair vs. capitalization.

Get the Snipd Podcast app to discover more snips from this episode

Get the app