Bought a short term rental property. Has anyone successfully performed a cost segregation study and wrote off W2 taxes? Looks like you can rent out a property for less than 30 day intervals and perform the write off. But sounds too good to be true. If you have done it, what was the cost of the segregation study?

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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.

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?

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