If you’re planning to pick up a property in 2024, remember that you likely won’t qualify for the STR tax benefits on your 2025 return unless the property is placed in service during 2025. “Placed in service” means it’s ready and available for rent, not just purchased. It doesn’t need to have bookings yet, but it must be fully ready for guests. You’ll also need at least two paid guest stays to establish your average stay length and meet the 7-day rule. A few important reminders: - Stays cannot be to family at any price. Renting to family is treated as personal use by the IRS. - Stays also cannot be to friends unless you charge true fair market value. - You can use friends as paying guests if it’s an arm’s length transaction at full market rent. If you want a quick explainer on “placed in service,” here’s a helpful video: https://www.loom.com/share/69f59e1de5184d2782473dfbe7bd72c0 If you’re thinking about buying or want to make sure you’re on track for 2025, our team is here to help.

Intro - Starter Post - 🐋 Why do you want to save money on taxes? Not just “to save money” — but what does that money mean for your life? I worked really hard to create my business and development my REI portfolio, so when a big chunk of the money has to go to taxes its very painful to watch 😨 Having more income will allow me to investment in other properties, help my parents achieve retirement, and travel. - 🐙 Where are you right now in your journey? Just starting out? Own rentals? Flipping or doing STRs? I have been in the STR space for 3.5 yrs, but own a mix of LTR/MTR/STR, total of 5 units. Looking to increase my portfolio by buying at least 1 property/year. - 🏖️ What’s your #1 challenge right now — your “big domino”? The one thing that would make everything else easier? I am a high income earner through a non RE business, so I try to stay in the STR space to qualify for certain tax savings, but STR is struggling right now and I am considering changing my strategy. Need to figure out how will that play out on my taxes.