400: The Truth Behind Short Term Rentals

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01:48 Do you have a short term rental?
03:44 What is the hype strategy
04:49 Please do not stick you Short Term Rental in a S-corp
06:43 Mark sure your short term rentals are sitting in an LLC
06:55 Substantial Services
07:10 The Matrix
10:18 #1 Material Participation
12:04 Seven ways to Material Participate
18:00 179 Deduction
19:35 #2 Material Participation

[@tvintx9741]

In the past we've had both long term and short term. Short term was booked 90+% of the time. Now colleagues with short term say they're down to 60% booked. People aren't traveling like they were. The long terms are now much more profitable when managed wisely. People don't think about all the factors and extra work it takes to successfully have a short term rental. They need to be rented a high percentage of the time to cover the extra costs. THINK THROUGH ALL THE FACTORS. This is by far one of your most informative videos! ❤️

[@sunshine3914]

Many people are on the road. Three RV parks recently popped up near us, charging $65+/day. Our short term rentals immediately fell to zero. Only family & friends have occupied them in the last 3 months.

[@tvintx9741]

@@sunshine3914 YES! Just in the 3 weeks since I wrote my original response, things have really plummeted for short term rentals in south Texas and OKC. South Texas has become too dangerous with the illegals. San Antonio tourism is falling fast! Short term rentals are failing, and landlords are switching to long term rentals. Especially as we watch the ability to buy a home disappear with mortgage rates. My OKC short term rentals near the hospitals have dried up almost completely. We have made those long term rentals now as well. So grateful all our homes have great tenants right now! Our country has gone crazy.

[@lostconciousness4255]

yeah, like, once a month, i need ot actually do work and SOMETIMES I actually vacuum the rental! Boy, it's hard owning property at the bank's expense.

[@tvintx9741]

@@lostconciousness4255 the banks don't own my investments. And treating an investment property with little to no care will quickly make it worthless.

[@Captain_Shane]

Love you Mark! I am on hold with the bank now working on a heloc to get our first rental property!

[@ssunkite1]

Solid content. Thanks for sharing your knowledge.

[@CFinch360]

This was a very clear presentation on a complex topic.

[@hilarycryptobaglady3752]

What if your filing married and we both are working on the property. Who's time counts? I don't work but husband has full time job. We bought for short term rental then retire here later, been remodeling and decorating since March, filinging for a LLC this week. FYI, you guys are my savor in figuring all this out. Thanks for all your hard work and sharing it.

[@hopefully2224]

You do work. You're a property manager

[@kentlbrown5810]

Am I correct that STR is considered a 39 yr property? What if the treatment changes?

[@kevind4061]

Ty

[@meljenzo]

Great video. What are your thoughts on material participation if you have a property manager? Is it possible to make that argument assuming you document your time to 500 hrs or more?

[@NicK-gw6go]

Why do all of these videos / podcasts avoid talking about the fact that you can only offset W-2 income if you fall under the 150k AGI???

[@kyrajachode4385]

Can you believe I’m listening to this and I receive and Airbnb reservation request 😂 kid you not! Love all the material, it’s been a great resource for me and all those I’ve shared with!

[@bbc454nos]

No one cares

[@mohr4less]

Short term rentals aren’t rental real estate activities for the purposes of RE pro. This strategy is bunk unless you can hit your 500 hours on one property, which almost no air B&B owners do.

[@abbibrennen2549]

definitely checked all the boxes.

[@kentlbrown5810]

What happens if I qualify in year 1 and do the cost seg then don’t qualify in a later year?

[@gregobrien9062]

Great video. Really not a loophole in my opinion. The regs to 1.469 clearly lay this out. If you follow the rules and ignore the tax treatment, that would be incorrect. We always teach our clients to let the facts dictate the tax status. .

[@thecanelamama6531]

Is S-corp fine if you're doing rental arbitrage?

[@afcsoca28]

Do you need to also be a real estate professional if you meet 7 days or less rented + material ownership?

[@ginashen8974]

If we charge Significant services for guests and if they pay for that, that’s “ significant service “?

[@ChristinaLop]

Thankfully I am the only person managing my 1 short term rental which is a seasonal property.

[@TLWitter]

Is there a online service that you would suggest for collecting and tracking rents?

[@TheObserver567]

This video has more ads than a tv show. Fawk

[@pdykesdykes]

this was great, question, have just a 200k property, cheapest, but safest way todo a cost seg?

[@mikebarnes2294]

Isn't their also a corollary issue for those who own short-term rentals in self-directed retirement plans as to whether or not UBIT applies?

[@mikebarnes2294]

Also, if you end up stuck paying self-employment tax on a short-term rental wouldn't this allow an opportunity to fund tax-favored retirement accounts?

[@CFinch360]

Yes it would, and yes I'm an accountant.

[@LouisFrancoisArt]

Do i need and llc in order to run my airbnb. Im in Suffolk county NY

[@MarkJKohler]

Hey Louis! Everybody's situation is different, so you would really benefit from talking to one of my attorneys. The Business Entity Structure consult would be a good fit! Call my Account Specialist Emily at [phone] ext. 2065 or email her at [e-mail] to get something set up!

[@DonaldDWilliams]

Are these the laws for your state?

[@toasgreece]

The truth is short term rentals make rents and prices unaffordable for locals with a job but all you care about is getting yours.

[@DonaldDWilliams]

What about Noelle Randall? She is on youtube.

[@AB-fq4mr]

Nice, taking homes away from families and school districts. Quite something to be proud of.

[@hopefully2224]

Every house supports the community in my city. It doesn't matter if it's a family home or a rental. Our property taxes pay for schools, police fire, and hundreds of other things.