STR Investing, The Podcast Secrets To Paying Less Taxes With Airbnbs Featuring Nathan Sosa
Mar 11, 2025
In this episode, tax strategist Nathan Sosa shares his expertise on maximizing tax benefits for short-term rental investors. He explains crucial strategies like material participation and real estate professional status that help optimize deductions. Listeners will learn about cost segregation, bonus depreciation, and the powerful 1031 exchange. Nathan’s insights are designed to guide both novice and seasoned investors in legally minimizing their tax burdens and ensuring they make the most of their investments. Don’t miss these wealth-building tips!
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Material Participation for Short-Term Rental Losses
- Secure short-term rental losses against active income by materially participating.
- This requires 100+ hours of work, exceeding any other individual's time spent on the property.
Three Key Material Participation Clauses
- Focus on three material participation clauses: 100 hours, 500 hours, or substantially all.
- 500 hours eliminates the need to track others' time; substantially all is fact-dependent.
Accumulating Material Participation Hours
- Accumulate material participation hours by communicating with guests and during property acquisition.
- Hands-on work, like setting up furniture, counts; reviewing financials or travel time does not.