Aug 3, 2021
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!