A short-term rental CPA who connects the property to your tax return.
Taxstra helps short-term rental owners coordinate property records, tax planning, and return preparation. We evaluate how you actually operate the rental before discussing loss treatment or depreciation. A short average stay alone does not establish that a loss can offset your salary.
CPA-led · Nationwide remote service · Approximately 1,500 clients
Who this service is for
You may be buying your first vacation rental, adding properties, changing managers, or trying to reconcile a platform statement with a tax return. The right engagement starts with the transaction and your household, not a promised deduction.
Taxstra combines CPA-led tax work with real-estate experience. Bryan is a CPA, MBA, and real estate broker. We work remotely with owners nationwide and define the entity, property, and individual returns included in the engagement.
- High-income professionals evaluating a purchase before closing or placing a property in service.
- Owners who need participation, personal use, financing, and depreciation reviewed together.
- Hosts with several properties, entities, booking platforms, or operating states.
- Owners commissioning a cost segregation study who need the results connected to their return.
What we evaluate and what you receive
| Workstream | What the work addresses | Records or output |
|---|---|---|
| Property and ownership | Who owns the asset, when it became available for rent, financing, and personal use | Ownership and placed-in-service facts documented for the return |
| Operating activity | Stay history, services, participation, and property-manager involvement | A supported activity classification and questions requiring follow-up |
| Depreciation | Land allocation, asset schedules, prior depreciation, and any engineering study | Depreciation implementation and any separately scoped accounting-method work |
| Return coordination | Rental results, household income, basis, at-risk and other applicable loss limits | Entity and individual filings identified in the engagement |
| Ongoing accounting | Gross bookings, platform fees, deposits, expenses, and property-level reporting | A separately agreed bookkeeping and reporting scope |
We define deliverables, filing responsibilities, review cadence, and fees before work begins. A planning consultation is not a guarantee that a particular loss will be deductible.
The facts that change the tax answer
For the passive-activity rules, an average customer-use period of seven days or less is one exception to the definition of a rental activity. Material participation is a separate question. Personal use, basis, the at-risk rules, and other limitations can still affect the result.
The tax classification also depends on the services you provide. Do not assume that every short stay belongs on the same schedule or has the same self-employment-tax treatment. We review the operating facts and applicable rules.
A cost segregation study changes the depreciation analysis; it does not independently prove that you can use the resulting loss. The engineering work, tax implementation, and loss analysis need to agree.
Records to gather before the first working session
A participation log should reflect actual work. We can explain which records are relevant; we cannot manufacture hours or replace missing evidence with a target number. If records are incomplete, identifying the gap is part of the work.
- Prior federal and state returns, depreciation schedules, and carryforward schedules.
- Closing statements, loan documents, entity ownership details, and improvement invoices.
- The date the property was ready and available to rent, with supporting records.
- Booking history showing each stay, cancellations, owner use, and guest use.
- Participation records describing who performed the work, dates, time, and tasks.
- Property-management agreements and a description of services provided to guests.
- Platform payout statements, bank and credit-card statements, and current bookkeeping reports.
Why the payout is not the whole accounting picture
Suppose a booking platform reports $12,000 of gross rental charges, withholds $360 of host fees, and deposits $11,640. Recording only the deposit hides both the gross activity and the fee. Refunds, lodging taxes, cleaning charges, and deposits can add further reconciliation questions.
This hypothetical example is about record quality, not tax savings. We match the platform activity to the books and determine the treatment of each item from the contract and transaction facts. Good records also make property performance easier to compare.
How the work starts
- Initial fit call: discuss properties, ownership, operating states, current CPA, and the next decision.
- Scope and records: agree on returns, planning, bookkeeping, and any historical repair work; request records through the engagement process.
- Review: reconcile the operating facts with the existing tax treatment and identify missing information.
- Implementation: prepare the agreed filings or planning work and document owner responsibilities.
- Follow-through: define any recurring reporting, estimate review, or next-year planning work.
Fees follow the work required
Property count matters, but complexity matters more. Several clean properties in one entity can require less remediation than one property with missing basis records, mixed personal use, and years of incorrect depreciation.
We consider the entities and states involved, condition of the books, prior filings, scope of household planning, and whether a study or accounting-method change must be implemented. Cleanup, engineering studies, bookkeeping, and return preparation should be distinguished in the proposal.
If a purchase or closing is approaching, bring the actual date to the initial call. Availability and the ability to complete work depend on the records and engagement; the website does not promise a turnaround.
Questions before working together
Can you help before I buy an STR?
Yes. A pre-purchase engagement can evaluate ownership, financing, expected operations, personal use, recordkeeping, and the tax questions to resolve. We cannot establish future participation or guarantee the eventual loss treatment from a purchase projection.
Do seven-day stays automatically let me offset W-2 income?
No. The short-stay exception and material participation are different tests, and additional limitations can apply. The answer depends on the operation, your records, and the rest of your return.
Do you perform the engineering cost segregation study?
The engineering study and CPA implementation are different services. We can discuss study coordination, review the tax implications, and define implementation work. The proposal should identify the provider and responsibility for each deliverable.
Will hiring a property manager disqualify me?
A manager does not determine the answer by itself. The work you perform and the work performed by others affect which material-participation test, if any, can be supported. We review the actual division of work.
Can you fix prior depreciation?
We can review the prior schedules and determine the appropriate correction route. Depending on the facts, an amended return or an accounting-method change may be involved. Historical correction work is separately scoped.
Do you work outside Illinois?
Yes. Taxstra provides remote services nationwide. We identify the property, owner, and entity states involved before agreeing on the filing scope.
Sources and further reading
Educational information, not individualized tax, legal, or investment advice. Examples are hypothetical. Your records, tax year, state rules, and engagement scope determine the work required.
Discuss your property and the decision ahead
Book a free initial consultation to discuss your properties, current records, and timing. We will determine whether the engagement is a fit and outline the next step. Bring a summary to the call; sensitive records belong in the agreed secure collection process.
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