Thank you so much for this! Natalie is an awesome guest and this episode was extremely helpful. I love the house hacking intel. This will forever be one of my favorite podcasts and I can't thank you two enough, Ashley and Tony!
Thank you for the kind words! I'm going to create some more house hacking guides soon becuase it's one of the best strategies IMO but also can be one of the most complicated tax wise. Happy Saturday!
If you don't like using the term "loophole" then STOP CALLING IT THAT! There is no short-term rental loophole. It is just regular IRS guidelines/code. Offsetting W-2 income with losses due to your STR is as much a loophole as deducting your mortgage interest on Schedule A.
TaxSmartREI podcast has a great series that goes into super detail about this. It's all the episodes that start with REPS. I think its REPS01 up to 5 or 6
What if you pay rent to the house when house hacking ? Like I rent rooms and I am living there but paying rent as well so how does that work tax wise ? Can you fully deduct all common areas ?
If you're subletting it may be a formal rental reporting situation, or it may be more of an expense share depending on the facts and circumstances. In no situations do you get to deduct based on common areas- only those which are 100% business/rental use.
I really love this podcast listening on Spotify. Thanks Ashley and Tony for hosting the podcast and to Natalie for a great advise about tax planning. I recently bought a rental property and in process renting for the 1st time. Is it worthy for me to do cost segregation study. My property worst 600K in CA and I have high W2 paying high income tax. Thanks!
Thank you so much for this! Natalie is an awesome guest and this episode was extremely helpful. I love the house hacking intel. This will forever be one of my favorite podcasts and I can't thank you two enough, Ashley and Tony!
Thank you for the kind words! I'm going to create some more house hacking guides soon becuase it's one of the best strategies IMO but also can be one of the most complicated tax wise. Happy Saturday!
If only I had heard this interview 2 years ago before I put my STR property into service. So much good info here that I had to learn the hard way.
If you don't like using the term "loophole" then STOP CALLING IT THAT!
There is no short-term rental loophole. It is just regular IRS guidelines/code.
Offsetting W-2 income with losses due to your STR is as much a loophole as deducting your mortgage interest on Schedule A.
Major question not asked or I missed, how do you go about finding a qualified RE tax professional?
TaxSmartREI podcast has a great series that goes into super detail about this. It's all the episodes that start with REPS. I think its REPS01 up to 5 or 6
What if you pay rent to the house when house hacking ? Like I rent rooms and I am living there but paying rent as well so how does that work tax wise ? Can you fully deduct all common areas ?
If you're subletting it may be a formal rental reporting situation, or it may be more of an expense share depending on the facts and circumstances. In no situations do you get to deduct based on common areas- only those which are 100% business/rental use.
Thanks. This is good tax information.
I love Natalie! 🤗
Thank you!!! You rock ☺
I really love this podcast listening on Spotify. Thanks Ashley and Tony for hosting the podcast and to Natalie for a great advise about tax planning. I recently bought a rental property and in process renting for the 1st time. Is it worthy for me to do cost segregation study. My property worst 600K in CA and I have high W2 paying high income tax. Thanks!
This is awesome
What is a CPA?
Certified Public Accountant -- who most people use to get their taxes done. I've had better luck with an EA -- an enrolled agent
Cost seg study
1f. Siempre sctivo con unos de los mejores
She sounds like she really needs to drink some water. 😟