Hello. Need some clarification about Tax benefits for STR using the STR look hole. Here is my situation. Year 1 (2025): Purchased the STR property. Financed with a bank. Did Cost Segregation. Will get a good size bonus depreciation for year 1 including some other set up costs. Did 100 hour material participation and more than anyone else. Will get to offset W2 income Year 2 (2026): Did major changes in property like installed pool and turf outside. Redecoorated and furnished the STR. Will claim all these expenses for 2026. Will do 500 hour material participation. Will get to offset W2 income. Year 3: For year 3 or 4 are there any other expense I can carry over from prior years to offset my W2 income tax ? ? I do not anticipate any major expenses. The only expense I can create is to pay down the mortgage from my own money and count it as "capital contribution". Thanks @Ryan Bakke, CPA @Mason Kimball, CPA @Kevin Medina, CPA, MBA

Let's say I partner with a couple of investors and we purchase a multifamily unit and plan to manage it ourselves. WE each log in our 750 hours to qualify as REP status. IN that situation can we all get a share of the "bonus depreciation" from the property and be able to off set our W2 income ? Thanks.

Hello all. Need help. I am filling W9 form first time for the cohost who help manage the STR. The STR is under LLC. Part I: In Line 1: My name. Line 2: Enter the LLC name. Line 3a check off Individual or LLC ? Part II: Do I enter my SSN or the LLC EIN number or both ? The LLC is owned by me and my wife. Do I fill the same form for both of us or just for me ? Per Chat GPT: I should NOT check off LLC but rather my own name. Also per Chat GPT I should not enter the company EIN number. Just my SSN is sufficient. Please help as soon as possible @Mason Kimball, CPA @Ryan Bakke, CPA @Kevin Medina, CPA, MBA

Hello. Want to check with the Tax consultant team there that my wife and I plan to buy a small multifamily unit or commercial real estate ( like a small strip mall). My wife ( and I) will be meeting the material participation of 750 hours (combined) in the year and since she has no other job she can be qualify to get REP status. That way we can get bonus deprecation and get a Tax break on my high W2 income. Question to tax team is that the 750 hours has to be maintained in the same year the property is purchased ? Or can I purchase the property sometime in 2026 and then she can start meeting the 750 hours in 2027 and we get the cost segregation study in 2027 and get the tax break for 2027 tax year. Thanks. @Ryan Bakke, CPA @Mason Kimball, CPA @Kevin Medina, CPA, MBA

I am talking to a builder to build a house on a lot. He will build it on his own "note" and construction loan with the understanding that I will purchase it once it is completed. I can probably get exact cost of construction of all the materials and the price of lot as well ( since builder will purchase it). In this situation do I need to do a Cost seg study ? I can obtain the bill from builder for everthing. The Cost Seg company does not have to "estimate" and costs.