Happy Tax Day?!? · 🏠 Lower Taxes w/ Ryan

Happy Tax Day?!?

Hi all — hope everyone has squared up with Uncle Sam.

I’ve got a mindset question for the group:

I run one short-term rental, now in its third full year. On an operating basis, 2025 was unprofitable for a variety of reasons. That said, I’ve since dialed in revenue and feel confident it will be consistently cash flow positive in 2026.

Here’s where I’m wrestling:

I completed a cost segregation study that generated meaningful tax savings in 2025. When I factor that in, my after-tax result (NOPAT) was actually quite positive in year two.

In fact, the tax benefit was strong enough that even with projected operating improvements in 2026, I expect to be roughly flat to slightly up in NOPAT year-over-year even with double-digit revenue growth.

So the question is — should I be reframing how I think about 2025?

I didn’t get into this business for the tax benefits alone, and I don’t want the tax tail wagging the investment dog. Should I consider 2025 a “profitable” year, or is that just mental accounting that masks the underlying performance?

Curious how others here think about this.

0 comments