STR losses offset W-2 income without REPS status.
If average guest stay is 7 days or less AND you materially participate (100+ hrs and more than anyone else), IRS treats the STR as non-passive — losses flow against your W-2 or business income. No Real Estate Professional Status required. Combined with cost segregation and bonus depreciation, first-year losses often exceed $100k on a $500k property.
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.
Multiply the $10M §1202 exclusion across multiple trusts.
4% corporate tax + 0% capital gains for bona fide residents.
Stack the $500K primary-home exclusion on top of a 1031 deferral.
Convert Traditional to Roth during sabbaticals or business-loss years.
Capitalize property taxes and interest on undeveloped land.
Deduct now, control forever, employ heirs.
Ordinary loss (not capital loss) on failed small biz — up to $100K.
Buy leveraged real estate inside your IRA — tax-deferred or tax-free.