Why Short Term Rentals Can Save You on ALL Taxes

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Жыл бұрын

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*Disclaimer: I am not a financial advisor nor am I an attorney. This information is for entertainment purposes only. It is highly recommended that you speak with a tax professional or tax attorney before performing any of the strategies mentioned in this video. Thank you.
#taxes #taxfreeliving #taxexpert #taxreduction #llc

Пікірлер: 73

@urboymon Жыл бұрын

Thanks for continuing to teach us this. 🙏🏾

@ice_pube_1473 Жыл бұрын

Please make a video on depreciation recapture!!🙏 asap

@karen_3343 Жыл бұрын

4:40 timestamp 7days or less 6:15 timestamp 30 or less while providing services

@KarenDub 4 ай бұрын

Excellent presentation of the information! Thank you.

@kolankprof 8 ай бұрын

Excellent, Karlton! Thanks for sharing your expertise on this topic!

@brianlagman4277 Жыл бұрын

I learned more from you than I did in K-12

@K_deon Жыл бұрын

Great video Mr. Dennis as always. Thank you sir.

@jerowm5568 11 ай бұрын

FANTASTIC VIDEO!! 🔥🔥🔥

@HOODCLASSICTELEVISION Жыл бұрын

Man, your channel is the SHIT!!! The way you explain the information is exquisite. I appreciate you for your help. Thank you

@kelmartine00 Ай бұрын

Thank you!

@superek4 Жыл бұрын

I'm surprised you didn't say anything about the 100 hour rule for materially participating 1 of the 7 ways to unlock the loophole

@uuid9595 Жыл бұрын

Do you have a link to this where I can read more?

@turbulence8638 9 ай бұрын

No one Explains this better! Thank you!❤🙏

@triphousing7866 2 ай бұрын

Great information! Soooooo Beneficial!

@stefanfatseas6624 3 ай бұрын

AWESOME RECAP on Short Term rentals

@AskSamPugh Жыл бұрын

Great information

@biskit7 Жыл бұрын

How much can you depreciate to minimize your income taxes to justify the hassle of running a short term Airbnb? It's great to learn the info but most people aren't going to do this.

@ice_pube_1473 Жыл бұрын

Pure game💪🔥🔥

@harrykeselman3921 Жыл бұрын

Karlton, I am a high W2 earner in the 35% tax bracket. I'm planning to upgrade my home, but unsure if I want to sell ($100-150K tax free cap gains will be had) or utilize it as an airbnb for tax savings. Would love to hear your opinion... I signed up for a consultation ... hope to hear back soon!

@abhinavsharma2748 6 ай бұрын

Awesome video! Please can you share your thoughts on the 100K W2 income limit?

@yosephstephens Жыл бұрын

Mastermind ✊🏾

@nikkinichols2126 Жыл бұрын

Hi, question. How does this work with the new Tax changes? Thank you.

@peteransel2715 Жыл бұрын

Really enjoying these very informative videos, and love your passion for the subject. You're a natural and gifted teacher. Question on short term rentals: Assuming seven days or less, how many times a year must you rent it to qualify? What if you only rent it 2 or 3 times a years. Say, 21 days max, is that enough? Also, you mention depreciation, but what about expenses like lawn care or pool cleaning? Can those be balanced against Active W-2 income? Also, from your previous videos, I'm assuming I should set this rental property up in an LLC.

@Artsal1984 4 ай бұрын

You can not use the unit for more than 14 days a year or 10% of the rental days so you can't circumvent using the dwelling all year minus a few weeks. You also can not use the expenses like lawn care or pool cleaning against your W-2 or active income unless you follow what Karlton said above (1 of the 6 ways around it or being a REP).

@ellenoir5678 Жыл бұрын

KD you got me feeling like a official unofficially EA 😂

@paquitagarrido1581 6 ай бұрын

Hi Karlton what can you advise on overseas short term rentals?

@jlaudamusic5190 8 ай бұрын

What if it’s a seasonal property, how much of the year does it have to be rented out to right off against W-2?

@richhands5269 Жыл бұрын

My three favorite channels: Karlton Dennis, Stock Brotha, & Richard Fain. Make my week complete!

@XWDaniel Жыл бұрын

Never heard of stock brotha but I definitely just sub to see 💪🏾

@joseacosta3569 3 ай бұрын

Facts

@JonathanLukemusic Жыл бұрын

You are awesome

@kietha7479 Жыл бұрын

Hi Karlton. How do I contact you privately for your services? Thank you.

@MackDaddyCRX Жыл бұрын

Can you do this with an ADU?

@lararose8482 Жыл бұрын

Great info. Wondering this. If the LLC has several residential rentals (say 4 in this example) and one of the rentals is STR does that mean I now obtain Rep Status and can now unlock the material participation status of all the other rentals as well? Or, does the status only apply to the losses on the one STR?

@tax-modern Жыл бұрын

Real estate professional status is unrelated to the rentals being short-term. If you're using that strategy, that works for all rentals that you materially participate in, they can be long or short term. It's irrelevant if they are in an LLC or not. A single member LLC is always disregarded for tax purposes and won't affect any tax strategies.

@osmanmohiuddin1 7 ай бұрын

Is there a minimum amount of nights the Airbnb needs to be rented for the year to qualify for the tax loophole?

@raulc5354 10 ай бұрын

so based on rentals that are 7 days or less do i report the income on a schedule e or c?

@cindywilburn5712 11 ай бұрын

16:47 what benefit does a series 8 if any . I’m thinkin about llc and series 8 and what else …. 😢

@Bormanb23 3 ай бұрын

Hi, thank you for this information. How much can you depreciate to minimize your income taxes to justify the hassle of running a short term Airbnb? average?

@cyagurl Жыл бұрын

I have an A-frame cabin in Lake Tahoe and actively promote/advertise local services such as 'in-cabin massage' and 'personal chef' to my STR...is this considered material participation? I am also on Peerspace for photoshoot, day-time rentals...is this 'non-exclusive use'?

@christopherjacob6209 9 ай бұрын

Could this work with renting an rv on places like RV share? It’s just like air b n b

@jenyhernandez8972 10 ай бұрын

airbnb is a bit complicated since now all the cities want to get a piece of the cake. You have to get them approved by the city before renting the property to any renter.

@johntherat339 Жыл бұрын

Karlton, great video. Is there a minimum amount of nights a short-term rental must be booked per year?

@tax-modern Жыл бұрын

If the property isn't a full-time rental property (if you mostly use it for personal use for example), then these strategies won't work to offset expenses from the rental against your other income.

@kc6071 8 ай бұрын

Does owning a rental aboard give u the same tax benefits

@kc6071 13 күн бұрын

Does the strategy work on foreign short term properties

@irainkoolaidTTV 2 ай бұрын

is a fix n flip considered active and get the same good writeoffs?

@abuwadie3 4 ай бұрын

That seem like a lot of work. You mentioned you can a rep for 750. Do you have to submit those hours or just need that handy in case of audit ?

@yingwu2143 5 ай бұрын

Is running a management company to manage a commercial property considered a real estate professional activity to offset active income?

@nyacoustics8373 Жыл бұрын

how do you add services if you live out of state? can you pay people locally to "provide the service"

@tax-modern Жыл бұрын

Material participation hours have to be you putting the time in yourself (or your spouse). If you hire someone else to do that work, those hours don't count towards material participation. At my tax practice we generally never clients who can qualify for material participation if they use a property manager or if it's not a local rental property.

@teinais 6 ай бұрын

Can I do this using my basement? 1bd 1 bath 1 living room 1 kitchenette renting a portion of my house as an air bnb?

@germanbenitez101 Жыл бұрын

@Karlton @Admin, what if you charge by week? Can the code be applied then? Rooms are rented by the week. Most people keep renewing weekly and stay a couple of months. Will this strategy apply in this situation? Thank you for sharing your knowledge with us! :)

@tax-modern Жыл бұрын

In that can your average stay would be longer than 7 years, and assuming you also aren't providing hotel-like services, you wouldn't qualify for the short term rental deduction method he talked about.

@germanbenitez101 Жыл бұрын

@@tax-modern thank you for responding!

@blakereifsteck8460 4 ай бұрын

Real Estate Professional Log Booklet??? Where's the free copies at goat

@yingwu2143 5 ай бұрын

Hi Karlton, can accelerated depreciation loss be deducted from K-1 income tax? Or interest income? I appreciate it. 🙏

@Artsal1984 4 ай бұрын

Yes, but only if you meet the criteria he outlined such as a STR or REP.

@karthickece06 Жыл бұрын

Can I do short term rental for a month to get this tax savings and then lease for a long term rental?

@tax-modern Жыл бұрын

Your average stay for all stay during the year would need to be less than 7 days (or less than 30 days with substantial services). So that generally wouldn't work because the math doesn't work.

@user-pl6mp3qx3j 3 ай бұрын

the guy just made it to the washington post for giving "illegitimate tax" advice. i wonder if the IRS agent is coming after these online influencers.

@ryanheller5424 Жыл бұрын

The problem with this strategy is that if and when your rentals show a profit (I mean, isn't that the goal of any investment, to make a profit), you will now have to not only pay income tax, but also a 15.3% SE tax on top.

@tax-modern Жыл бұрын

Yes and no. Whether or not you have to pay SE tax is entirely dependent on whether you provide substantial services (hotel-like services). So you could have a short-term rental (less than 7 days average stay) and not provide substantial services, which would qualify you for the deduction against your other income but you wouldn't be subjected to SE tax.

@lHurtYourFeeIings 10 ай бұрын

Dear IRS, "I sleep all day and don't provide any services to the tenant". What is the IRS going to do? Send a T800 back in time to monitor your daily activities from two years ago? The IRS will have a hard time proving their case that you DID provide services.

@linamontano4325 4 ай бұрын

Can you please let me know where the IRS states that short-term rental that are rented less than 7 days can be declared as a ordinary income instead of passive income.

@Artsal1984 4 ай бұрын

www.irs.gov/publications/p925#en_US_2023_publink1000104581 It's listed under Rental Activities and is the first line item that is an exception.

@notanotherone5564 7 ай бұрын

Way to go Reagan 🙄

@leengo2691 8 ай бұрын

Will you do my taxes

@kmalhotra182 5 ай бұрын

Carlton - are you solely doing these videos to funnel clients to force use your company for real estate investing. Because i tried calling your company for advice and they wouldn't entertain me unless i sign a contract with them. That's fucked up

@amitsehg 5 ай бұрын

Any average CPA does what most of what this guy talks about. Nothing new here. You are lucky to not fall in his trap.

@Artsal1984 4 ай бұрын

He already provides a ton of content for free and helps you understand questions to either ask your own CPA or hire him. Of course he makes these videos to not only make money on KZfaq, but to grow his business. Lastly, why in the world would they give you advice for free? I do agree with amitsehg though, a good CPA will do about 90% of these things, but you need to know what questions to ask sometimes to unlock these savings.