Other People's Money
Back to library
Tax

Cost Seg + STR Loophole Stack

Combine bonus depreciation with STR material participation to erase W-2 tax.

Overview

Buy a short-term rental (avg stay ≤7 days), materially participate (100+ hrs and more than anyone else), run a cost seg study, and use the accelerated losses against W-2/1099 income — no REPS needed.

Best fit
High W-2 earnersFirst-time RE investorsAirbnb operators
Estimated impact
$50K–$250K+ W-2 offset in year 1

Click Generate advisory deep dive for mechanics, IRC citations, a step-by-step execution plan, a worked numeric example on your profile, costs, risks, and this-week actions.

More tax strategies

See all Tax strategies
OPM