Published: Sept. 19, 2023, 4 p.m.
In this episode of the Main Street Business podcast, hosts Mark J Kohler and Mat Sorensen delve deep into the tax benefits available through short-term rental properties. They explain how real estate professionals can offset their losses on rentals against their other income sources, thus introducing the concept of a short-term rental loophole.\xa0
- Understanding the potential tax benefits of utilizing tax write-offs and loopholes.
- Exploring the concept of cost segregation and its potential for significant write-offs.
- Examining the criteria for material participation in real estate investments and its impact on tax deductions.
- Leveraging cost segregation and depreciation to optimize tax benefits in the short term.
- Balancing the pursuit of tax deductions with the importance of making sound investment decisions.
- Incorporating various tax strategies such as S Corps, LLCs, and self-directed retirement accounts.
- Cautioning against making poor investment choices solely to chase tax losses.
- Maximizing the tax benefits of short-term rentals through proper structuring and reporting.