SHORT-TERM RENTAL PROPERTIES: U.S. TAX ISSUES
WHAT ARE THE TAX ISSUES RELATED TO SHORT-TERM RENTALS?
Written by Steven Miller, CPA July 24, 2018
MEANING OF SHORT-TERM RENTAL PROPERTIES
PARADIGM SHIFT AND TAX RAMIFICATIONS
The vacation rental booking industry has grown rapidly. Travelers' choices abound. But, let's consider the property owner's perspective.
Real estate investors traditionally purchased single and multi-family homes for longer term leases of six months or more. The investor's focus was on positive cash flow and long-term property appreciation.
With the growing popularity of the vacation rental market and numerous providers, many investors are getting into this market segment. Most have not stopped to consider the tax ramifications of such an investment. Typically they assume it works the same way as long-term property rentals. They would be wrong.
And, what about the non-U.S. (foreign) owner of U.S. real estate? Such owners may profit handsomely from these investments but there are many added complications to consider.
This is a brief list of many of the issues an investor should consider. It is highly recommended you develop a strategy and plan of action before investing in such ventures.
If you have not already done so, take action now to address the issues you have not previously considered.
DECISION POINTS TO CONSIDER AND SEEK EXPERT GUIDANCE WITH