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What is the salary range for PL8 ?
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What is the salary range for PL8 ?
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Chief
Airbnbs are actually usually profitable. You'd be better off with a long term rental. Even then you probably wouldnt be able to deduct the losses against your earned income, it would be carried forward for use in future years if the property was ever profitable or when you sell it. So wouldnt do you any good.
Chief
When I say profitable I mean profitable from a tax perspective. Like showing a profit on the tax return. I intimately understand deductions as an individual income tax to preparer. Airbnbs can generate a ton of revenue. Which can significantly exceed deductions.
There has never been a worse time to invest in an AirBnB. Please do some research on how AirBnBs are performing. Lots of people are trying to sell their AirBnB properties.
This is very, very market dependent. There are definitely parts of the country that are still performing well.
Rising Star
Perplexity
F. If not an investment property, what are other people doing?
Chief
Contributing as much to tax favored accounts as you possibly can. Retirement, HSA, 529s.
i own an airbnb that i also use as a weekend vacation home. the airbnb income covers my mortgage. But everything else is a cost so my llc shows a loss and I use that to deduct from my personal taxes to help offset taxes paid on my high w2 income. tax code requires you to spend at least 100 hours actively managing the airbnb, so that’s the catch.
Chief
The allowance disappears if your MAGI is over 150,000. The you can't take the losses, they carry forward. If you are under 100,000 you can take up to 25,000 in losses. Between 100,000 and 150,000 the 25,000 allowance phases out. Most people here are making more than 150,000.
Bigger pockets podcast and resources and Avery Carl from the Short Term Shop