Combine §280A(g) 14-day rental + STR cost seg + material participation for cascade of tax benefits on same property.
Advanced HNW stack: (1) primary residence rented to owner's business 14 days/yr under §280A(g) for tax-free income + biz deduction, (2) separate STR property acquired with cost seg + 60% bonus + STR loophole material participation for massive W-2 offset, (3) intra-family: adult children with STR loophole income offset by 401(k) contributions to zero-tax bracket. Requires two properties and coordinated calendars; annual savings $75K–$300K.
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Short-Term Rentals (avg stay ≤7 days) are NOT rental activities under §469 — material participation alone unlocks non-passive losses.
Cost seg study reclassifies 20–35% of STR building basis to 5/7/15-yr property — 60% bonus (2024) = massive year-1 loss.
The Augusta Rule: rent your primary residence to your own business up to 14 days/yr at market rate — 100% deductible to biz, tax-free to you.
Keep personal use under 14 days OR 10% of rental days to preserve STR loss deductibility; over triggers vacation-home rules.
STRs providing hotel-like services (daily cleaning, meals, transport) move to Schedule C — SE tax + QBI eligible.
Airbnb/VRBO often collect + remit TOT for you — exclude from gross rental income; save on state income tax base.
Lease a unit long-term ($2K/mo), furnish, list as STR for $5K/mo — no property purchase required.
Exchange appreciated LTR into an STR — defer cap gains, immediately unlock STR loophole + cost seg on new basis.