but they’re often leaving a lot on the table when it comes to 𝘁𝗮𝘅 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝘆.

One area I see missed constantly: 𝘀𝗵𝗼𝗿𝘁-𝘁𝗲𝗿𝗺 𝗿𝗲𝗻𝘁𝗮𝗹𝘀.

A few takeaways that matter if you’re a contractor 👇

🔹 𝗦𝗧𝗥𝘀 𝗰𝗮𝗻 𝗴𝗲𝗻𝗲𝗿𝗮𝘁𝗲 𝘀𝗶𝗴𝗻𝗶𝗳𝗶𝗰𝗮𝗻𝘁𝗹𝘆 𝗺𝗼𝗿𝗲 𝗰𝗮𝘀𝗵 𝗳𝗹𝗼𝘄 than long-term rentals — especially near stadiums, hospitals, airports, or major job hubs.

🔹 𝗧𝗵𝗲 𝟭𝟰-𝗱𝗮𝘆 𝗿𝘂𝗹𝗲:

If you rent out your primary residence for 𝟭𝟰 𝗱𝗮𝘆𝘀 𝗼𝗿 𝗳𝗲𝘄𝗲𝗿 in a year, that rental income can be 𝟭𝟬𝟬% 𝘁𝗮𝘅-𝗳𝗿𝗲𝗲. No income cap. $10k/night? Still tax-free.

🔹 𝗕𝗨𝗧 — once you cross 14 days, the tax treatment changes completely. Planning matters.

🔹 𝗛𝗼𝘄 𝗿𝗲𝗻𝘁𝗮𝗹𝘀 𝗮𝗿𝗲 𝗰𝗹𝗮𝘀𝘀𝗶𝗳𝗶𝗲𝗱 𝗶𝘀 𝗰𝗿𝗶𝘁𝗶𝗰𝗮𝗹:

STRs can be treated as:

• Passive rental income (preferred in many cases)

• OR an active business (which can trigger 𝘀𝗲𝗹𝗳-𝗲𝗺𝗽𝗹𝗼𝘆𝗺𝗲𝗻𝘁 𝘁𝗮𝘅𝗲𝘀 𝘂𝗽 𝘁𝗼 ~𝟭𝟱%)

Many investors accidentally fall into the second category and don’t realize it until tax time.

🔹 Depreciation + expense strategy still applies — but only if the rental is structured correctly.

If you’re a contractor:

• Running strong cash flow

• Thinking about real estate

• Or already doing short-term rentals

…your tax strategy should be just as intentional as your build strategy. Book a time to learn more: https://accountingsolutionsllp.com/appointment/

Disclaimer: This content is provided for educational purposes only and is not legal, tax, accounting, or financial advice. Every situation is unique, so consult your own attorney, CPA, or financial advisor before making decisions based on this information.