Use active business losses from STRs to offset your income tax #shorts #incometax #shorttermrentals

Name: Use active business losses from STRs to offset your income tax #shorts #incometax #shorttermrentals
Uploaded: 2022-12-22T03:30:13+00:00
Duration: 16 s
Channel: Tim Hubbard
Description: Short YouTube clip (Tim Hubbard, Dec 22, 2022) discussing tax benefits of real estate, focusing on depreciation and how short-term rental owners can…

22 Dec 2022 · 0 min

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0:16

Short YouTube clip (Tim Hubbard, Dec 22, 2022) discussing tax benefits of real estate, focusing on depreciation and how short-term rental owners can leverage depreciation and financing structure to reduce their cash invested. The speakers mention material participation and the difficulty of qualifying as a real estate professional when holding another full‑time job.

Wondering if you can give us just a brief difference between what a real estate professional is and why that might be difficult for a lot of people to qualify for if they have another full time job and then material participation as it relates to short term rentals.
So the big tax benefit for real estate is depreciation, right? You get to take a deduction.
For a portion of the property, whether it wears out or not, and depreciation on top of that. The bank, they may put in 80% of the money, but they don't get any of the tax benefit. You get 100% of the tax benefit, even though you may only put in 20% of the money on top of that. If you do it right, you'll end up putting in 10% of the money. The government will put in 10% money of the money and the bank will put in 80% of the money. So you, you, if you actually set this up right, you, you can end up only putting in 10% because the government will put in the other 10%.