By then, he had sold his short-term rental property for a profit, but he still owned other long-term rentals.
Therefore, they used the real-estate professional status and bonus depreciation to reduce their taxable income.
The main one is through the short-term rental tax loophole (STR loophole).
For example, Eileen pointed to Henderson, Nevada, which won't allow a short-term rental permit for a house if there is a permit for an existing short-term rental within 1,000 feet.
Deductions would cancel out the taxes owed from the property's revenue, and what is left will reduce your W2 taxable income.
Persons:
Michael Hyun, Joshua, Hyun, Eileen Kim, Eileen's, Michael, Brandon Ford, Eileen, Ford, Michael said, you'll
Organizations:
Business, CPA, IRS, Tax Relief, American Families and Workers
Locations:
Joshua Tree , California, New York City, San Francisco, Santa Monica , California, Henderson , Nevada, San Jose , California, Alameda County