Illustrative photography · Not the modeled property
BROKEN BOW, OKLAHOMA
↗The Woodland Retreat
Purchase$500k
Annual cash flow¹$3,832
Annual gross rent¹$90k
FOR PHYSICIANS, EXECUTIVES, ATHLETES & HIGH W-2 EARNERS
Build an asset.
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$51,694
View math ↗Illustrative purchase + furnishings: $565,000.
Closing costs, other setup and reserves are additional.
Closing costs, other setup and reserves are additional.
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 PROVIDE
YOUR ROLE
YOU LEAVE WITH
Timelines depend on financing, diligence and property readiness.
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.
YOUR GOALS. A WIDER SEARCH.
The right property.
Not just the closest one.
We research the market, underwrite the property and help you build a shortlist around your goals.
A NATIONAL PERSPECTIVEDifferent places.
Different places.
One personal plan.
Select a pin or a market below.
OKLAHOMA / 01ILLUSTRATIVE
Representative photography · Not the modeled property
The Woodland Retreat
A hypothetical Broken Bow cabin with a separately funded $65,000 furnishing package.
Potential first-year federal tax reduction²$51,694
Assumes the entire modeled loss is usable at a 35% federal rate. Not a guaranteed or typical result.
01
Market demandWho visits, when and why.
02
Property economicsRevenue, costs and downside.
03
Your fitBudget, owner role and CPA review.
Higher-capital hypothetical scenarios, not market forecasts or client results. Every address requires current diligence; tax eligibility is assessed separately.
Find my starting pointFOLLOW THE MATH · ILLUSTRATIVE EXAMPLE
One property.
Two different benefits.
A deduction lowers taxable income. Your tax rate determines what that could save you.
THE PURCHASE$500,000Property price
+THE SETUP$65,000Separate furnishings
Closing costs, other setup and reserves are additional.
$165,000
Illustrative bonus depreciation
$100k property components$65k furnishings
Land excluded. Actual allocation depends on the cost segregation study.$147,696
Modeled rental tax loss
$165,000 deductions− $17,304 income before depreciation= $147,696 modeled loss
Before regular building depreciation and other tax adjustments.$51,694
Illustrative first-year tax reduction
$147,696 usable loss × 35%
Assumes the full loss is allowable and offsets income taxed at 35%. Actual savings may be lower or zero.SEPARATE BENEFIT · ANNUAL CASH FLOW
$3,832 / year
Modeled cash remaining after operating costs, loan payments and reserves, before income tax.
Rental revenue$90,000
Operating expenses− $43,000
Loan payments− $38,668
Capital reserve− $4,500
Cash flow and tax savings are separate. Depreciation is a non-cash deduction; tax savings are not assumed to recur.
Read all example assumptions and tax-code references
Financing is illustrative, not a lender quote: $100,000 down (20%), a $400,000 loan (80%), 7.5% fixed interest and 20-year amortization. The first 12 payments total $38,668, including $29,696 interest and $8,973 principal. Figures are rounded to whole dollars; calculations use unrounded amounts. Operating expenses and revenue are assumed, not market forecasts. The $100,000 shorter-life acquisition allocation is 25% of the $400,000 depreciable acquisition basis. 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 $100,000 shorter-life acquisition allocation plus $65,000 of additional qualifying furnishings with no double counting. 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, 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.
The $65,000 furnishings are funded separately and assumed placed in service in the same year. Purchase plus furnishings totals $565,000; modeled down payment plus furnishings requires $165,000 cash before closing, other setup and reserves. Furnishing purchases are not included in the displayed recurring annual cash flow, so initial-year cash outlays are materially greater. 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 do you provide, and what do I handle?
We provide property research, acquisition coordination, launch guidance, operating tools, on-demand advice and an included cost segregation study. You fund and approve the acquisition, perform your assigned launch tasks and lead day-to-day operations. We document responsibilities before engagement. Our work and automated activity are not your personal participation hours; your independent CPA evaluates your actual work and eligibility.
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.