Tax Day is today. If you're an STR owner and haven't filed, you still have hours. Here's what a smart filing actually looks like.
The five-item checklist
- Material participation test. If you averaged more than 100 hours and more participation than anyone else in 2025, you may qualify for non-passive treatment of losses.
- Cost segregation study. Properties placed in service in 2025 still qualify for accelerated depreciation through a cost-seg.
- Short-term rental loophole. If your average guest stay was ≤7 days and you materially participated, STR losses can offset W2 income.
- Occupancy tax (TOT) reconciliation. Make sure your platform remittances match what the city has on record. Mismatches create audit exposure.
- 1099 reconciliation. Airbnb, Vrbo, and Booking.com 1099s rarely match your actual deposits. Reconcile before filing.
What most hosts miss
The STR loophole alone can shelter $30K-$80K of other income for active hosts. If your CPA doesn't know the term "material participation for STR," find a new CPA before next year.
