PEORIA AREA, ILLINOIS
↗The Weekend House
Purchase$400k
Annual cash flow¹$12k
Annual gross rent¹$60k
FOR PHYSICIANS, EXECUTIVES & HIGH W-2 EARNERS
Build an asset.
Potentially lower
your income taxes.
We source your short-term rental, help you buy and launch it, and include a cost segregation study. Your CPA determines whether the resulting loss can offset your W-2 income.
From property search to launch · Cost segregation study included
The deduction reduces taxable income. Your tax savings depend on eligibility, available income and the tax rates the loss actually offsets.
YOUR NEXT ASSET ILLUSTRATIVE SCENARIO / 01
Illustrative federal tax reduction · 35% assumption$22,400
View math ↗One asset. Two potential advantages.
01 Know what to buy.02 Know how to launch.03 Know your role.
FROM FIRST CONVERSATION TO YEAR ONE
See exactly
what happens next.
Play the journey, or tap any step. See what we handle and where you take the lead.
01 / 07 · CONSULT
YOUR OWNERSHIP BRIEF
Your starting point
BEFORE YOU COMMIT
Start with your goals.
WE HANDLE
YOU HANDLE
YOU LEAVE WITH
Timelines depend on financing, diligence and property readiness.
ONE OFFER. ONE CONNECTED PLAN.
Next Step
STR Launch.
A sourced deal. A guest-ready property. A completed cost segregation study. Year-one operational services. One coordinated plan.
DONE-FOR-YOU EXECUTION*Your STR.
Your STR.
From search
to launch.
One property. A coordinated team.
Build my STR plan ↗Start with a fit assessment. Review scope before committing. No payment collected here.*We execute the agreed service work. You remain an active owner; this is not a promise of hands-off tax qualification.
A property sourced for your goals
A deal matched to your agreed budget and criteria, with written revenue assumptions, operating costs, cash-flow projections and downside analysis.
YOU RECEIVE Property shortlist + deal underwriting
A supported path to purchase
Licensed broker and lender coordination, inspection and local-use diligence support, and a documented go/no-go decision. You approve the deal and fund the purchase.
YOU RECEIVE Acquisition checklist + closing coordination
A guest-ready launch
A property setup plan, furnishing and vendor coordination, photography coordination, published listings and operating-system setup.
YOU RECEIVE Launch budget + live listings + operating setup
A cost segregation study — included
We arrange and pay for one property-specific study for the acquired property by a qualified provider. You receive the completed report and asset schedules for your CPA. No separate study fee.
YOU RECEIVE Completed study + classified asset schedules
Year-one operational services
Guest communication, pricing, cleaning coordination and maintenance coordination within the agreed service scope. Owner duties are documented and reviewed with your CPA.
YOU RECEIVE Operational services + performance reports
A participation toolkit and CPA package
A task-and-time log template, responsibility plan, organized income and expense records, and the completed study. Your CPA makes the tax determinations and prepares your return.
YOU RECEIVE Recordkeeping toolkit + year-one CPA handoff
Plan your property investment.
You fund the down payment, financing, closing, renovations, furnishings, reserves, property operating costs and your CPA’s tax-return work. Your cost segregation study is included. Service scope, the year-one period and renewal terms are documented before you engage. No guaranteed closing date, return or tax savings.
SELECTIVE BY DESIGN
Two lenses.
One smarter shortlist.
Buy a business that makes sense.
Underwrite revenue, operating costs and downside before making an offer.
Validate the tax plan separately.
Your CPA reviews the property’s use, your operating duties and loss limitations.
THE SELECTION LENS CONCEPTUAL · NOT LIVE DATA
Property screening informs the shortlist. It does not establish tax eligibility.
A BIGGER BOARD OF POSSIBILITIES
Your next move.
Mapped out.
Tap a market. Explore the property math.
UNITED STATES ILLUSTRATIVE MARKET SCENARIOS
Illustrative scenarios, not available listings. Every address needs current diligence.
ILLINOIS / 01ILLUSTRATIVE
The Weekend House
A family-focused stay in Central Illinois.
Potential year-one federal tax savings$22,400
See assumptions & math
¹ Stabilized annual cash flow after modeled operating costs, debt service and a capital reserve, before income tax. Launch-year results may be lower. Figures are hypothetical, not client results or promises.
FOLLOW THE MATH · ILLUSTRATIVE 2026 SCENARIO
A $64,000 deduction.
Not a $64,000 refund.
At an assumed 35% federal rate, a fully usable $64,000 loss could reduce federal income tax by $22,400.
Rental deductions→Allowable nonpassive loss→Lower taxable income→Potential income-tax reduction
01 / IDENTIFY DEPRECIABLE ASSETS
Start with the property.
- Purchase price
- $400,000
- Less assumed land value
- − $80,000
- Depreciable acquisition basis
- $320,000
- Assumed qualifying shorter-life assets
- $80,000
- Assumed bonus depreciation rate
- 100%
- Illustrative bonus deduction
- $80,000
The $80,000 allocation is an example, not a standard percentage or promised study result. Land is excluded. The remaining $240,000 follows the applicable regular depreciation schedule.
02 / CALCULATE THE RENTAL LOSS
Deduct costs from income.
- Gross rental revenue
- $60,000
- Deductible operating expenses
- − $26,000
- Deductible mortgage interest
- − $18,000
- Income before depreciation
- $16,000
- Illustrative bonus deduction
- − $80,000
- Modeled tax loss*
- − $64,000
*Subtotal before regular building depreciation and other tax adjustments. Subject to participation and loss limitations. This is not a completed tax return.
03 / TRANSLATE LOSS INTO TAX SAVINGS
Apply the rate you actually offset.
- Modeled fully usable loss
- $64,000
- Assumed federal marginal rate
- × 35%
- Potential federal tax reduction
- $22,400
Illustrative taxable income$500,000 → $436,000Before → after a fully allowed $64,000 loss
Assumes every dollar offsets income taxed at 35%, with other tax items unchanged. Crossing brackets changes the result. This does not reduce W-2 Social Security or Medicare payroll taxes.
SAME PROPERTY · SEPARATE CASH CALCULATION
$12,000 in modeled cash flow.
$60,000 revenue − $26,000 expenses − $19,000 loan payments − $3,000 reserve = $12,000 before income tax.
Why cash and tax differ
The $19,000 loan payment includes $18,000 interest and $1,000 principal. Principal repayment and setting aside a reserve are not current deductions. Depreciation is a non-cash deduction.
Read all example assumptions and tax-code references
This fictional full-year illustration assumes 100% business use, no personal use, qualifying new or used assets acquired and placed in service in 2026, no election out of bonus depreciation, and a substantiated $80,000 shorter-life allocation. It assumes the activity is nonpassive because the customer-use exception and a material participation test are met, sufficient basis and at-risk amounts, and no excess business loss or other deduction limit. It excludes regular building depreciation, separately purchased furnishings, closing-cost basis adjustments and tax treatment of advisory and acquisition-related costs; your CPA determines those items. Actual results and the study allocation differ by property. State conformity, credits, AMT and other tax interactions are not modeled. A shorter launch year changes income and costs. This is not an incremental benefit comparison against ordinary depreciation.
Tax savings are separate from operating cash flow and are not assumed to recur. The actual acquisition and setup budget requires property-specific quotes. Accelerating deductions reduces future depreciation and can trigger recapture upon sale.
Read: IRC §469 participation and loss limits · IRC §168(k) bonus depreciation · Rental expenses, land and personal use.
Three gates before a W-2 offset.
1. Qualifying customer use
A common route is an average stay of seven days or less for the tax year.
2. Material participation
You must meet a valid annual test through real work. Buying a package does not qualify you.
3. A usable loss
Your CPA checks basis, at-risk amounts, other loss limits and the full return.
YOUR NEXT STEP STARTS HERE
Let’s put your
next move on paper.
Tell us about your goals. We’ll review your responses and contact you to discuss your next step.
Responses are securely submitted through Tally to Next Step. Open the form in a new tab ↗
THE NON-NEGOTIABLES
Clarity before
commitment.
A good investment needs to work beyond the tax benefit.
Is the cost segregation study actually included?
Yes. STR Launch includes the provider fee for one completed cost segregation study on the acquired property, plus delivery of the report and asset schedules to you and your CPA. Your CPA’s return preparation and independent advice are separate. A study does not guarantee an allocation, deduction or IRS acceptance.
How does an STR reduce tax on my W-2 income?
Eligible depreciation and expenses can produce a rental tax loss. If the activity is nonpassive and the loss is currently allowable, it can offset income reported on your individual return, including W-2 income. The savings are the difference between your tax with and without the allowed loss. We provide the property services and records; your CPA determines and claims the deduction. Follow the worked example.
Does the tax deduction pay for the property?
No. A deduction is not a dollar-for-dollar credit or purchase reimbursement. You still fund the purchase and expenses. Savings depend on usable losses and applicable rates. Any refund also depends on withholding and other payments; future depreciation and recapture affect the longer-term outcome.
What does “done for you” actually mean?
We perform the agreed research, coordination, launch and year-one operational services. You make acquisition decisions, fund the investment and perform meaningful operating work under a plan reviewed by your CPA. Purchasing a service package does not establish material participation.
Can I use operational support and still qualify?
Potentially. Hiring help is not automatically disqualifying, but the actual allocation of work matters. Under the more-than-100-hour test, you must participate at least as much as any other individual. Other tests have different requirements. Changing what a service is called does not change its tax treatment. Your CPA should review the real arrangement before you engage. IRS participation guidance
How quickly can we launch?
The schedule depends on your financing, available properties, inspections, local approvals and setup needs. We establish milestones after the initial review. We do not promise a purchase, launch date or tax deduction by a specific deadline.
What makes a short-term rental eligible?
For the common seven-day route, average customer use must be seven days or less for the tax year, and you must materially participate. Real estate professional status is not required for that nonrental activity route. A separate exception covers average stays of 30 days or less with significant personal services. Loss limits still apply. IRS Publication 925.
How much do I need to participate?
One test requires more than 100 hours and at least as many hours as any other individual, including non-owners. Other tests include more than 500 hours or substantially all participation. Spousal work can count. Investor-only report review generally does not. Your CPA selects the appropriate test; keep credible records of tasks and time. Material participation rules
Does cost segregation write off the whole house?
No. The study classifies property components into appropriate recovery periods. Under IRC §168(k), certain eligible assets acquired and placed in service after January 19, 2025 qualify for 100% bonus depreciation, subject to acquisition rules and exclusions. Land is not depreciable, and the remaining building follows its applicable schedule. IRS depreciation guidance.
What else can limit the tax benefit?
Basis, at-risk and excess business loss limits may restrict deductions. Personal use can change treatment, including when use exceeds the greater of 14 days or 10% of fair-rental days. Local permits, HOA rules, financing, insurance and economic risk also matter. IRS rental-property guidance
Are the returns or tax savings guaranteed?
No. These are modeled examples, not actual properties or past client results. Revenue, expenses and valuations can change; investments can lose money. Your CPA determines tax treatment, including future depreciation recapture. Service scope should be agreed before engagement.
A CLEAR PLAN. A REAL ASSET. YOUR NEXT CHAPTER.