Is anyone using AirBnB/ Short Term Rentals as part of their FIRE plan? I have two properties purchased with ~3% as vacation homes. We certainly use them more than the 2 weeks allowed so I don’t think we can really get too many tax write offs. I go back and forth between thinking I’m loosing out on making money on these assets and not wanting to deal with the hassle/ plus having strangers in my spaces I truly see as my home. Thoughts? Advice on getting over the mental block?

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🙋🏻‍♀️ I have two vacation homes I Airbnb/STR. We keep as two weeks a year each and rent out the rest. As much as I’d like to use them more I don’t want to step away from the income. Each nets $85-100k (all expenses except income tax) plus our mortgage is being paid off by other people ($25-30k a year per house).
When I retire, we will likely use one of the houses more such that we just break even and then the other house will remain as a rental and we just use the two weeks.

Yes it’s work and yes things happen in the house but to me the financials make it worth it.

likesmarthelpful

What are is this? Property value vs rent in our area is pretty bad.

One of the cornerstones of my FIRE plan has been not having two vacation houses.

funny

OK, enjoy. :)

I have a mid term rental that I stay at a few weekends a year. I stay under the 14 day threshold so I can take advantage of the expenses. Even if you stay there for more than 14 days, any days where you spend 4 hours or more working on the property won’t count towards the 14 personal days. Any time I’m at my property, I’m always doing inventory, making small repairs, running errands, etc.

Long term, I’m probably not going to manage rentals as part of my fire strategy because they’re a lot of headaches. I haven’t any 2am phone calls but I figure it’s only a matter of time. I’d rather sell and turn them into lower effort assets even if they have lower yield.

smarthelpful

You would be under the obligation to prove maintenance days vs personal days if audited.

Photos of before / after work done + receipts + a time log is what I use. It’s the same way I documented my hours towards material participation for the short term rental loophole.

helpful

Suggest looking closer at the tax rules. Once you use for more than 14 days personal you can not deduct a loss, but you can still deduct expenses against rental income on a prorated basis.

helpful

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Partners - Do you ever take vacations?

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They should really poll the associates to seed ideas for holiday party locations...

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I found the following perks in Deloitte should also be considered at RISE

1. Office Phone reimbursement
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Receiving approx 30% pay bump to move firms. Stay schemin boys

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What holiday party did you get?
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There are worse ways to spend a day of PTO. Running the road course at Road America.

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likesmarthelpful

Anyone afraid to take vacation in FY18, for fear of missing utilization? 🙋🏼🙋🏼‍♂️

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Curious how other companies are position their 2023 December holiday calendar.

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A partner just walked from his office. By passed 4 or 5 people who are generally more knowledgeable on our banking logistics straight to the only black support staff employee to@ask if today is a bank holiday.

likefunny

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