Planning with the Short-Term Rental Loophole with Bill Hampton | Real Life Planning Podcast Episode 67
Financial PlanningIn Episode 67 of the Real Life Planning Podcast, Cynthia Meyer, CFA®, CFP®, ChFC®, talks to Bill Hampton of Hampton Tax and Financial Services about tax planning with the short-term rental “loophole.” Tune in for an educational overview on property criteria, material participation, cost segregation studies, bonus depreciation, and how to avoid common mistakes when treating your short term rental activity as nonpassive. Educational purposes only - please see your tax professional for tax advice.
"The short-term rental loophole is a unique opportunity to save tens or even hundreds of thousands of dollars on taxes—if you do it right." — Bill Hampton
This week on Real Life Planning Podcast:
| 💡 | What is the short-term rental loophole — and how does it work? [00:02:26] |
| 💡 | What qualifies as material participation for short-term rentals? [00:03:50] |
| 💡 | How can cost segregation and bonus depreciation reduce your tax bill? [00:04:55] |
| 💡 | What are common mistakes investors make with this tax strategy? [00:14:05] |
| 💡 | What should you know before selling a property where you’ve taken bonus depreciation? [00:19:26] |
Takeaway Quotes:
"You don’t physically have to be at the property. With smart locks and tech, you can manage short-term rentals remotely and still qualify for material participation." — Bill Hampton
"Depreciation recapture is one of those things that can surprise people—especially if they didn’t plan ahead when they sold the property." — Cynthia Meyer
"You can learn more from following a great mentor for a week than from years of trial and error." — Bill Hampton
Connect with Bill Hampton:
- Website: hamptonfinancialllc.com
Connect with Real Life Planning:
About the Real Life Planning Podcast
Hosts Cynthia Meyer and Vekevia Tillman-Jones explore practical steps for real estate investors to build financial freedom and make working for someone else optional.
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