• The Tax Strategy Airbnb Hosts Can’t Afford to Ignore | Sean Graham

  • May 6 2025
  • Length: 41 mins
  • Podcast

The Tax Strategy Airbnb Hosts Can’t Afford to Ignore | Sean Graham

  • Summary

  • Did you know your short-term rental could be a powerful tax-saving machine? In this episode, We sit down with Sean Graham—CPA, real estate investor, and cost segregation expert—to uncover how vacation rental owners can legally slash their tax bills using smart depreciation strategies. From bonus depreciation and the short-term rental loophole to material participation rules, Sean breaks down complex tax concepts in a way that actually makes sense (yes, really!). You'll learn how the IRS actually encourages real estate investors to succeed—and how a simple cost segregation study could save you thousands. Whether you’re a high-income earner or just getting started in the rental game, this episode is packed with actionable insights to help you keep more money in your pocket and reinvest with confidence. Grab a pen. Take notes. This could change the way you invest. Things we discussed in this episode: Cost Segregation: Accelerates depreciation by breaking property into components with 5-, 7-, or 15-year lifespans instead of the standard 27.5 or 39 years. Bonus Depreciation: Allows large first-year write-offs for property improvements; phasing down to 40% in 2025. Short-Term Rental Loophole: Treats short-term rentals as active businesses, enabling high earners to offset W-2 income with depreciation. Material Participation: To claim active status, owners must spend 100+ hours and more time than anyone else on the property. Real Estate Professional Status (REPS): Requires 750+ hours annually in real estate to treat rental losses as active and offset other income. Tax Deferral: Investors can defer taxes by reinvesting gains and passing properties through inheritance with a step-up in basis. IRS Incentives: The IRS offers generous depreciation and tax breaks to encourage real estate investment. Cost Segregation Process: Engineering studies allocate costs to shorter-life components for faster depreciation. Co-Hosting Impacts: Using third-party managers can affect an owner’s ability to meet material participation rules. Eligible Properties: Cost segregation works best for high-value short-term and long-term rentals with substantial improvements. Get in touch with Sean: Facebook - https://www.facebook.com/people/Maven-Cost-Segregation-Tax-Advisors/61570153671981/ LinkedIn - ⁠⁠https://www.linkedin.com/company/mavencostseg/ Instagram - ⁠⁠https://www.instagram.com/mavencostseg/ Website - ⁠⁠https://mavencostseg.com/ #SmartStayShow #realestate #realestateinvestor #realestateagent #RealEstateInvesting #ShortTermRentals #TaxStrategy #CostSegregation #BonusDepreciation #TaxSavings #RentalProperty #InvestmentTips #PassiveIncome #RealEstateWealth Follow Us! Join Jason Muth of Prideaway Stays and Straightforward Short-Term Rentals and Real Estate Attorney / Broker Rory Gill for the first episode of SmartStay Show! Following and subscribing to SmartStay Show not only ensures that you'll get instant updates whenever we release a new episode, but it also helps us reach more people who could benefit from the valuable content that we provide. SmartStay Show ⁠⁠Website⁠⁠ and on ⁠⁠Instagram⁠⁠ and⁠⁠ YouTube⁠⁠ Prideaway Stays ⁠⁠Website⁠⁠ and on ⁠⁠Facebook⁠⁠ and ⁠⁠LinkedIn⁠⁠ Straightforward Short-Term Rentals ⁠⁠Website⁠⁠ and on ⁠⁠Instagram⁠⁠ Attorney Rory Gill ⁠⁠on LinkedIn⁠⁠ Jason Muth on ⁠⁠LinkedIn⁠⁠ Hospitality.FM SmartStay Show is part of⁠⁠ Hospitality.FM⁠⁠, a podcast network dedicated to bringing the best hospitality-focused podcasts to those in and around the industry, from Food + Beverage, Guest Experience, Diversity & Inclusion, Tech, Operations, Hotels, Vacation Rentals, Real Estate Law, and so much more!
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