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Off Topic : 1) When Does a software engineer start financial planning for retirement since the our Career span is only 15-20 years on average.
2) How much and which schemes to invest to mitigate the risk?
3) How much do we need for retirement? Tata Consultancy Infosys Mindtree IBM Wipro Capgemini Cognizant HCL Technologies
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Coach
This can be done if your short term rental qualifies you for the real estate professional status. If you manage everything, you could potentially meet the amount of hours worked requirement to qualify.
This is not tax or financial advice, consult with your own tax and financial professionals.
Subject Expert
Yes, I’ve done this. You need to have an average stay of less than 7 days, and you need more than 100 hours of material participation and more than any other person (including your cleaners). I bought a property in November 2021, spent 160 hours renovating it and prepping it for rent, then had 2 different stays in the final week of the year (cuz it takes 2 stays to create an “average).
I think the cost seg was around $1200. It generated an $80k loss, which got me a refund of nearly $30k.
Pm: What was the impact come 2022 when I’m assuming you didn’t have 100 and/or your cleaners had more time than you?