Short-Term Rentals Offer Some of the Best Tax Deductions in Real Estate
When it comes to tax advantages, short-term rentals (STRs) stand out as one of the most powerful tools in a real estate investor’s arsenal. Unlike traditional long-term rentals, STRs often qualify as active businesses under IRS rules—allowing savvy investors to unlock accelerated depreciation, deduct nearly all operating expenses, and even offset high-income W-2 earnings with real estate losses. From bonus depreciation through cost segregation to business travel and furnishing write-offs, short-term rentals offer a unique combination of flexibility, income, and exceptional tax savings. Whether you're a first-time host or a high-net-worth investor, STRs provide unmatched opportunities to reduce your tax burden while building long-term wealth.
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From mortgage interest and property taxes to furnishings, cleaning fees, and depreciation, short-term rental owners have access to powerful tax deductions that can significantly reduce taxable income. This article breaks down the top write-offs every host should know to keep more of what they earn and operate smarter.
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Unlock Massive Tax Savings with Cost Segregation
Did you know short-term rental owners can deduct tens of thousands in year-one tax savings using cost segregation? This strategy accelerates depreciation on parts of your property—like flooring, appliances, and lighting—reducing your taxable income fast. Perfect for hosts looking to boost cash flow and offset high earnings.
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Boost Your STR Tax Savings with the Section 179 Deduction
Did you buy a vehicle or equipment for your Airbnb business this year? You may qualify for the Section 179 deduction—allowing you to write off the full purchase cost in the year it's placed in service. This article explains how STR owners can use this powerful tax break to reduce taxable income and keep more profits.
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Employing Your Kids Can Save Thousands
Learn how short-term rental owners and small business operators can legally hire their children to perform real work, deduct their wages as a business expense, and reduce taxable income—while teaching kids valuable financial skills and keeping more money in the family.
