Business:Investing
One of the two biggest expenses that everyone incurs are taxes. Which means, legally lowering our taxes should be of the utmost importance! For easy numbers and simplicity's sake, if you have $1000 in income taxes and you neglect to write off an immediately deductible $500 expense you incurred operating your short-term rentals then you just unnecessarily GAVE your government $500!
For many people taxes are intimidating. You may be asking, “Can I write this off? “I don’t want to get audited.” But I'm here to tell you, as long as you follow the rules you should NOT be concerned. My tax advisor specializes in real estate and they recently put together a great webinar dedicated to tax advice and your STR’s… and since I know we are all busy and taxes aren’t necessarily the most fun topic, so I took the liberty of breaking down the webinar FOR YOU with my biggest takeaways that you need to know!
This week we’ll talk taxes and break down:
- How the IRS defines a short term rental
- Different types of income reporting (Schedule E vs C)
- How your tax losses are treated?
- What it means to be a “real estate professional” and how that can benefit you
- How you can become a Real estate professional EASIER with STR’s than you can with traditional long term rentals
- Depreciation
- How much you can use your property for “personal use”
HUGE DISCLAIMER: I am not a tax professional and these are just recommendations of topics to look into so please check with your tax advisor and accountant to confirm they will work for you.
You can also find the whole, hour long video webinar by vising https://restmethods.com/recommended-resources/ and finding “Keystone CPA.
Want a crash course in just two days with everything you need to know to find, acquire and operate a short-term rental with passive operations? Good news! We have our latest live webinar recording available!
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You can find all of our links here including our website, recommended resources, upcoming live event, short-term rental playbook, Instagram and more!
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