video1.0<iframe src="https://www.loom.com/embed/ef2b0482d21d430a8d2eff65f3afe2f1" frameborder="0" width="2376" height="1782" webkitallowfullscreen mozallowfullscreen allowfullscreen></iframe>17822376Loomhttps://www.loom.com17822376https://cdn.loom.com/sessions/thumbnails/ef2b0482d21d430a8d2eff65f3afe2f1-72400fc8246ba56d.gif779.378This Loom explains the short-term rental tax strategy, commonly called the short-term rental loophole, and how it can generate large first-year depreciation deductions. The speaker says the IRS allows writing off operating costs, mortgage interest, furniture and amenities, and depreciation, typically over 27.5 or 39 years, but cost segregation can accelerate depreciation into year one via bonus depreciation for 15-year-or-less property. To qualify, the property generally must be rented 7 days or less on average and used 14 days or less per year, and the owner must meet material participation requirements such as the 100-hour test where no one else works more. The example discussed includes a $949,000 purchase in 2023 with tax savings of roughly $110,000 to $120,000 in that year.