Tax Planning for Short-Term Rental Properties: Entity Structures, Depreciation, Deductions, QBI Strategies

This CLE/CPE course will provide attendees with an in-depth analysis of essential tax planning techniques for short-term rental properties. The panel will discuss the tax benefits of owning rental property, material participation rules, passive activity rules, criteria to ensure compliance with strict tax rules to maximize rental losses, aggregating rental properties, issues stemming from personal use of rental property, and other key tax planning considerations for short-term rentals.

Short-term rentals offer unique opportunities to generate income and offset other earnings—but only when specific IRS requirements are met. This session will help attendees understand how to structure rental activities, navigate complex tax rules, and apply strategies involving entity selection, depreciation, and deductions to maximize tax efficiency and profitability. Counsel and tax professionals must understand complex tax rules for rental activities and certain exceptions to maximize tax savings.

The tax treatment of short-term rentals can vary depending on income classification, entity structure, depreciation, deductions, and other critical items. By navigating IRS rules and leveraging strategies, taxpayers could offset non-passive income while significantly increasing the profitability of their short-term rental properties.

Listen as our panel discusses the tax benefits of owning rental property, material participation and passive activity rules, maximizing rental losses, and other key tax planning considerations for short-term rentals.