One of the two biggest expenses that everyone incurs is taxes. This means, legally lowering our taxes should be of the utmost importance! For easy numbers and simplicity's sake, if you have $1000 in income taxes and you neglect to write off an immediately deductible $500 expense you incurred operating your short-term rentals then you just unnecessarily GAVE your government $500!
For many people taxes are intimidating. You may be asking, “Can I write this off? “I don’t want to get audited.” But I'm here to tell you, as long as you follow the rules you should NOT be concerned. My tax advisor specializes in real estate and they recently put together a great webinar dedicated to tax advice and your STR’s… and since I know we are all busy and taxes aren’t necessarily the most fun topic, so I took the liberty of breaking down the webinar FOR YOU with my biggest takeaways that you need to know.
Podcast Highlights:
0:00 - Short Term Rental Riches Podcast
02:07 - What Is Short Term Rental
02:47 - Schedule C Vs Schedule E
04:05 - How Tax Losses Are Treated
04:53 - Real Estate Professional Status
07:21 - Short Term Rental Depreciation
10:23 - Personal Use Property Rules
HUGE DISCLAIMER: I am not a tax professional and these are just recommendations of topics to look into so please check with your tax advisor and accountant to confirm they will work for you.
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Tim Hubbard, a successful investor and CEO of a seven-figure short-term rental management shares it all in his Short Term Rental Riches Podcast. This podcast gives you the insider tips you need to know to acquiring, operating, and scaling a successful short-term rental business.
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