Question

W2 employee using STR for tax deduction

Forum|Forum|2 years ago
March 7, 2024
1 reply
0 views

Leverage, the STR tax deduction through cost segregation. Do I need to own the property fully? Can I win the property 50% with the partner?

If I can, own partly), does that mean that I also only get 50% off the deduction from the cost segregation?

I buy the property in October do I only need to show 750 hours Prorated for three months in the year to leverage, the benefit?

Ask the Experts - MetLife III - Mar 2024

R

RobertB4444

So I am assuming that you are trying to own a property 50% with a partner (which of course you can) and you want to use it as a short term rental and you want to be treated as a real estate professional for 2023 even though you only had the property for the final three months of the year.

Yes, if you split the property with a partner you would put 50% of the income and expenses on your return and they would do the same on theirs.

There is no mechanism to prorate the 750 hours. But if you're a real estate professional then you are.

@Akarsh12

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"