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This is why STRs are the best investment you can make if you work a W-2 job. Instead of paying crazy high taxes… We buy houses, rehab and furnish them, then run a cost segregation study to front-load the depreciation. Then we use the STR loophole to write those losses off against our active income, not just passive. Our house in on this South Carolina beach? $955,716 in depreciation. $400K+ in actual tax savings. In one year. And while the IRS gets less, the property appreciates and cash flows $10-20K/month.