Hey team! Just bought our first STR and launching in spring! Since we are early in the year, would you guys suggest trying to close on one more this year? Or is it best to spread it out 1 STR purchase per year to gain maximum Cost segg benefits to offset W2 income?

We have have two investors on a large STR property (held in an LLC), would everyone qualify for Bonus Depreciation on the property? Any has brought in investors in the past on properties to give them benefit of the operating income and bonus depreciation?

Hi! I just want to make sure I am 100% understanding when you need to have material participation and when you don't to take advantage of the 100% depreciation of qualified improvements to your STR property: 1. If you have W-2/1099 income and you want to write off your loses against your W-2/1099 income, you need to have material participation. (Reason: Because the W-2/1099 is active income and the STR real estate is passive unless you have material participation to make it active) Is that Correct? 2.If you don't have a W-2 and you only invest in real estate, you can take advantage of the 100% depreciation for qualified improvements for a property against your passive investment earnings. No material participation is required. (Reason: All of the income would be considered passive) Is that Correct? 3.I read that you qualify for material participation if you took part in the business for five of the previous 10 taxable years. No specific hours required. (https://www.reihub.net/resources/short-term-rental-tax-loophole/). Is that Correct? 4. If you don't meet the material participation requirement you can still take advantage of the 100% depreciation against any passive income. If the depreciation is more than your passive income, it will carry over to the next year. Is that Correct? Thank you!!

🏆 Winners 1. First-Time Homebuyers Struggling With Affordability - People who are unable to come up with a down payment could enter the housing market sooner. - Especially beneficial for younger Americans with decent 401(k) balances but limited savings. 2. The Real Estate Industry - More buyers = more demand. - Realtors, mortgage brokers, appraisers, and homebuilders could see a boost in business. 3. Politicians Promoting “Homeownership” - Policies like this play well politically, especially with millennials and Gen Z who feel priced out of the market. - It gives the appearance of doing something big about housing affordability — even if it doesn’t address the root issue. 4. People in Hot Real Estate Markets - In high-growth cities or low-inventory markets, this added demand could drive prices even higher. - Existing homeowners benefit from price appreciation. 💸 Losers 1. Future Retirees Who Withdraw Funds - The biggest loser is likely you 30 years from now. - Withdrawing from your 401(k) cuts into compound growth, which is often the key to a secure retirement. - Many people may never “rebuild” that retirement balance once it's withdrawn. 💡Example: Pulling $40,000 at age 30 could cost you over $300,000 at retirement, assuming 7% growth. 2. The Broader Retirement System - This undermines the original purpose of 401(k)s, which is long-term retirement savings. - It sets a precedent that retirement accounts are just piggy banks for near-term needs, weakening financial discipline. 3. Taxpayers (If the Plan Includes Forgiveness or Defaults) - If this policy includes penalty-free and tax-free treatment, it reduces future tax revenues. - If borrowers default on mortgages or lose homes, there could be broader economic spillovers. 4. People Who Stay Invested in 401(k)s During Market Rallies - If a participant withdraws during a market dip to buy a house, they lock in losses. - Meanwhile, others who leave money in may benefit from the rebound.

I have a single member LLC pass through umbrella that holds all my individual STR LLCs. Can I pay myself as an employee so that I can contribute 72k after tax and do a mega back door Roth? Is it true I don’t need a C or S corp to do this? A friend does this using mysolo401k.net. He says I have to pay payroll taxes at 15%. I’m assuming that’s 15% of the 72k? He has the employer contribute 72k and the employee contribute 0