🚨 A brand new bill was signed into law on July 4th, 2025.
One big change? The return of 100% bonus depreciation.
Now… bonus depreciation isn’t new.
But this law revitalized it — and made it fully available again.
Here’s why that matters: 👇
🏠 By default, rental real estate is passive.
Since 1986, the rules say:
❌ Passive losses can only offset passive income.
❌ You can’t use them against W-2 income or business income.
… Unless you qualify for an exception.
✅ Short-term rentals are that exception.
But the rules are strict.
Here’s what it takes:
1️⃣ The property must be short-term in nature.
➡️ Average tenant stay = 7 days or less.
2️⃣ You must meet management tests.
🕒 Time: At least 100+ hours actively engaged.
🚫 Exclusivity: No one else (like a property manager) can work more hours than you.
It’s not magic.
It’s math.
👉 Qualify — and you can use paper losses from your STR to offset income that usually has no tax shelter.
That’s a powerful strategy.
💭 Questio...