Tax Tips for Short Term Rental Owners with Ryan Bakke

Feb 16, 2023

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It's hard to not get the real estate investing bug at some point, it feels like everyone is investing in property and short term rentals. There's just an overall buzz around real estate right now as an investment! I think as more people are wondering what's going on with the economy, interest will pique even further. Maybe you're looking for places to put your wealth and real estate is on your radar...

That's why I've brought Ryan Bakke on the show today. Ryan owns several businesses and works in the real estate field. He owns the Real Estate CPA firm where he advises over 150 clients on real estate tax strategies. His core mission is to help people build wealth, have an impact, and change their family tree.

We're chatting about why real estate investing is so popular, especially short-term rentals. There are several tax benefits and tax strategies that can help you keep more of what you earn as an owner of short-term rentals! We're diving into depreciation, whether you need the Schedule E or Schedule C, and commonly missed deductions!

What you'll hear in this episode:

[2:15] How Ryan became the youngest CPA in Illinois at the age of 22

[5:45] What inspired him to show up more on social media and educate in that space

[7:30] What is a short-term rental? Why are they so popular?

[9:00] Short-term rental rules from a tax perspective

[11:15] What the material participation test is and why it matters

[14:30] Should short-term rental operators be tracking their time spent in the business

[16:00] Depreciation and how the tax benefits of short-term rentals operate

[18:15] Determining the worth of your land vs. your building

[20:45] Who is a good candidate for short-term renting and what are the tax advantages they can expect?

[27:00] What if you stay in your rental for a period of time? How does that affect taxes? What are the rules?

[29:15] Commonly missed tax deductions for short-term rentals

Follow Ryan on IG @learnlikeacpa

Check out Ryan's Short Term Rental Tax Training: https://learnlikeacpa.mykajabi.com/a/2147527423/EYQHc2Bs

His Tax Strategies for Real Estate Investors group: https://www.facebook.com/groups/1489227181430876

Learn More About Ryan: https://linktr.ee/LearnLikeaCPA

* Related episodes:

221. How Do I Use the S Corp Strategy?

226. Deducting Business Travel

231. Questions You MUST Ask Your Accountant Before Signing a Return

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* See how much you can save with an S Corp: https://www.keepwhatyouearn.com/keep-what-you-earn-s-corp-calculator

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The information contained in this podcast is intended for educational purposes only and is not individual tax advice. Please consult a qualified professional before implementing anything you learn.