Real Estate Nov 24, 2025 • 10 min read
How W-2 Earners Use Short-Term Rentals to Cut Their Tax Bill
A step-by-step breakdown of how short-term rentals unlock tax savings for W-2 earners.
Short-term rentals follow a unique set of IRS rules. When combined with material participation, cost segregation, and bonus depreciation, they can create large paper losses that legally offset W-2 income. This guide walks you through exactly how the strategy works.
Real Estate Dec 10, 2025 • 12 min read
How W-2 Employees Use Material Participation to Unlock the Short-Term Rental Loophole
Understand the hour tests, avoid common traps, and turn STR losses into real W-2 tax savings.
Short-term rentals are one of the few ways W-2 earners can turn real estate losses into non-passive losses that offset salary income. This guide walks through the material participation tests, what hours actually count, and how to pair them with cost segregation and bonus depreciation.
