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Tax

REPS + Short-Term Rental Loophole

Turn W-2 income into tax-free passive rental losses.

Overview

Real Estate Professional Status (750+ hrs, majority of work-time) makes rental losses NON-passive — offsetting W-2/business income. The STR loophole (avg stay ≤7 days + material participation) achieves the same result without needing REPS.

Best fit
High W-2 earnersPhysician/exec spousesAirbnb operators
Estimated impact
$30K–$200K+ W-2 tax offset

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.

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