Explains short term rental tax loophole from @neelhome
The speaker breaks down the 'STR loophole,' explaining how high-income earners can buy a property, operate it as a short-term rental business, and use cost segregation studies to accelerate depreciation. He walks through a specific mathematical example of a $400k property resulting in a $120k deduction to wipe out tax liability.
Creator: @neelhome on Instagram
Transcript
So there's a tax loophole called the STR, short term rental loophole, that people who make over 6 figures are using to pay zero income tax. And so here's how it works. You wanna buy a property or an additional property. Let's just say it's $400,000 And then here's the key. When you operate this business as a short term rental, it's not just a rental property, it's a business. Now this unlocks something called accelerated depreciation. And thanks to a new law that was just signed by the president
Topics: Real Estate, Business, Entrepreneurship
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