SHORT-TERM RENTAL REAL ESTATE

General information The Short-Term Rental (STR) Real Estate Strategy involves owning and operating properties rented out for short durations— typically an average of 7 days or less per stay (e.g., via platforms like Airbnb or VRBO). Unlike traditional long-term rentals, STRs can be classified as a trade or business under IRS rules rather than a passive rental activity, provided certain conditions are met. This classification unlocks significant tax benefits, including the ability to offset non-passive income (e.g., W-2 wages) with losses from the rental activity, leveraging depreciation, and potentially avoiding passive activity loss limitations.