--- title: "STR Tax Savings Calculator | STR Loophole" description: "Calculate how much you could save with the STR loophole. Enter your income and property details to see your potential savings." lang: en json-ld: | [ { "@context": "https://schema.org", "@type": "Organization", "name": "STR Loophole", "url": "https://strhours.com", "logo": "https://strhours.com/logo.png", "email": "hello@strhours.com", "description": "Track your STR hours, prove Material Participation, qualify for the short-term rental tax loophole, and offset W-2 income with real estate losses.", "sameAs": [ "https://apps.apple.com/app/id6759050584", "https://play.google.com/store/apps/details?id=com.agentsinvest.strloophole" ], "contactPoint": { "@type": "ContactPoint", "email": "hello@strhours.com", "contactType": "customer support" } }, { "@context": "https://schema.org", "@type": "SoftwareApplication", "name": "STR Loophole", "url": "https://strhours.com", "applicationCategory": "FinanceApplication", "operatingSystem": "iOS, Android", "description": "Track your STR hours, prove Material Participation, qualify for the short-term rental tax loophole, and offset W-2 income with real estate losses. Built for high-income W-2 earners who own short-term rentals.", "offers": { "@type": "Offer", "price": "0", "priceCurrency": "USD" }, "author": { "@type": "Person", "name": "Jennifer Beadles", "url": "https://jenniferbeadles.com" }, "featureList": [ "Voice-powered STR hour logging", "Per-property tracking for multiple rentals", "100-hour and 500-hour material participation tests", "Third-party hour tracking", "Spouse hour logging", "Calendar sync", "Progress dashboard", "CPA-ready audit reports", "PMS sync" ] }, { "@context": "https://schema.org", "@type": "Person", "name": "Jennifer Beadles", "url": "https://jenniferbeadles.com", "jobTitle": "Real Estate Investor & Entrepreneur", "description": "Real estate entrepreneur with 17 years of hands-on investing experience who built an 8-figure rental portfolio. Creator of REPS Time, STR Loophole, and Kids Payroll apps for real estate investors.", "knowsAbout": [ "Short-term rental tax strategy", "STR Loophole (Treas. Reg. 1.469-1T(e)(3)(ii)(A))", "Material participation tests", "Real Estate Professional Status", "Cost segregation", "Bonus depreciation" ], "sameAs": [ "https://jenniferbeadles.com", "https://repstime.com", "https://kidspayroll.com" ] }, { "@context": "https://schema.org", "@type": "SoftwareApplication", "name": "STR Tax Savings Calculator", "applicationCategory": "FinanceApplication", "operatingSystem": "Web", "offers": { "@type": "Offer", "price": "0", "priceCurrency": "USD" }, "url": "https://strhours.com/calculator", "description": "Calculate how much you could save with the STR loophole. Enter your income and property details to see your potential savings.", "author": { "@type": "Person", "name": "Jennifer Beadles", "url": "https://jenniferbeadles.com" } }, { "@context": "https://schema.org", "@type": "FAQPage", "mainEntity": [ { "@type": "Question", "name": "How accurate is this calculator?", "acceptedAnswer": { "@type": "Answer", "text": "This calculator provides estimates based on typical scenarios. Actual savings depend on your specific property details, local tax rules, and individual tax situation. Use it for planning, but consult a CPA for precise numbers." } }, { "@type": "Question", "name": "Do I need cost segregation to use the STR loophole?", "acceptedAnswer": { "@type": "Answer", "text": "No—the loophole works with standard depreciation too. But cost segregation dramatically increases Year 1 savings, which is when most investors want the deduction." } }, { "@type": "Question", "name": "What if I don't hit 100 or 500 hours?", "acceptedAnswer": { "@type": "Answer", "text": "If you don't meet material participation requirements, the loss is \"passive\" and can only offset other passive income—not your W-2. The loss carries forward for future use." } }, { "@type": "Question", "name": "Does this work in all states?", "acceptedAnswer": { "@type": "Answer", "text": "The STR loophole is a federal tax strategy. Most states follow federal rules, but some have variations. Consult a tax professional familiar with your state." } }, { "@type": "Question", "name": "Can my CPA run these numbers for me?", "acceptedAnswer": { "@type": "Answer", "text": "Yes—your CPA can provide precise projections based on your complete tax picture. Share this estimate with them as a starting point." } } ] } ] --- [![STR Loophole](/_next/static/media/logo.2db75674.png)](/) [Features](/#features)[Pricing](/#pricing)[Calculator](/calculator)[Hospitable](/blog/hospitable-sync-live)[About](/about) Learn [Log in](https://app.strhours.com/auth)[iOS](https://apps.apple.com/app/id6759050584)[Android](https://play.google.com/store/apps/details?id=com.agentsinvest.strloophole)[Sign Up Free](https://app.strhours.com/auth) Free Tool # STR Loophole Tax Savings Calculator See how much the STR loophole could save you in taxes this year. Enter your property details below for an instant estimate. Property Purchase Price $ Enter your total purchase price. We'll automatically exclude an estimated 15% for land value, since land is not depreciable. Your Federal Tax Bracket 24% 32% 35% 37% Not sure? Most high-income W-2 earners are in the 32-37% bracket. Will you do a cost segregation study? Yes, with cost seg Maximize Year 1 savings No, standard only 27.5-year straight-line Calculate My Savings ## How This Calculator Works This calculator estimates your potential tax savings from the STR loophole based on: #### Purchase Price The total cost of your short-term rental property. We automatically exclude an estimated 15% for land value, since land is not depreciable under IRS rules. #### Tax Bracket Your marginal federal tax rate determines how much each dollar of deduction saves you. Higher brackets = bigger savings. #### [Cost Segregation](/glossary#cost-segregation "Learn more about Cost Segregation") A cost seg study identifies components that can be depreciated faster than the standard 27.5-year [MACRS](/glossary#macrs "Learn more about MACRS") schedule—often over 5, 7, or 15 years. With [bonus depreciation](/glossary#bonus-depreciation "Learn more about Bonus Depreciation"), much of this can be taken in Year 1. #### Bonus Depreciation Rate Under the 2025 tax bill, qualifying property acquired and placed in service after January 19, 2025 generally uses 100% bonus depreciation. Use lower rates only when modeling older or legacy scenarios. #### Important Assumptions - Land value: estimated at 15% of purchase price (not depreciable) - Cost segregation allocation: 20-30% of building value reclassified to shorter lives - Bonus depreciation: defaults to 100% under current law for qualifying post-Jan 19, 2025 property; lower rates are for legacy scenarios - State taxes: not included (vary by state) ## Requirements to Claim These Savings The STR loophole isn't automatic. To use rental losses against your W-2 income, you must: ### 1\. Average Rental Period ≤ 7 Days Your property must be a genuine short-term rental with an average stay of 7 days or less. Most Airbnb and VRBO properties qualify. [Learn more about the 7-day rule](/str-loophole#seven-day-rule) ### 2\. [Material Participation](/glossary#material-participation "Learn more about Material Participation") You must actively work on the rental—not just collect rent. The IRS offers two main tests: - 100 hours AND more time than anyone else (including property managers) - 500 hours (safe harbor—no comparison needed) [How many hours do you need?](/blog/how-many-hours-str-loophole) ### 3\. Proper Documentation Keep contemporaneous records of your hours: date, activity description, time spent, and which property. This is your protection in an audit. **STR Loophole** makes this effortless with voice logging and automatic exports. ## Why Cost Segregation Matters Without cost segregation, your depreciation is spread evenly over 27.5 years. With it, you can often take 25-35% of your building's value as a deduction in Year 1. Example: $500,000 property Without Cost Seg With Cost Seg Year 1 Depreciation ~$15,500 ~$110,000 Year 1 Tax Savings (37%) ~$5,700 ~$40,700 5-Year Total ~$28,500 ~$95,000 Cost seg studies typically cost $3,000-$8,000 depending on property size and complexity—often paying for themselves 10-20x in first-year savings alone. ## Frequently Asked Questions ### How accurate is this calculator? ### Do I need cost segregation to use the STR loophole? ### What if I don't hit 100 or 500 hours? ### Does this work in all states? ### Can my CPA run these numbers for me? ### Ready to Qualify? The STR loophole can save you thousands—but only if you meet the requirements and document everything properly. [Sign Up Free](https://app.strhours.com/auth)[Read the Complete Guide](/str-loophole) [![STR Loophole](/_next/static/media/logo.2db75674.png)](/) Track your hours. Qualify for the loophole. Our Other Tools [REPS Time — Track your 750 REPS hours](https://repstime.com)[Kids Payroll — Pay your kids in your business](https://kidspayroll.com) Product - [Features](/#features) - [Calculator](/calculator) - [Download](/download) Company - [About Us](/about) - [Blog](/blog) - [STR Loophole Guide](/str-loophole) - [Support](/support) - [Contact](/contact) - [Privacy Policy](/privacy) - [Terms of Service](/terms) - [Delete Account](/delete-account) Popular Articles - [How Many Hours Do You Need?](/blog/how-many-hours-str-loophole) - [STR Loophole vs REPS](/blog/str-loophole-vs-reps) - [The 100-Hour Test Explained](/blog/the-100-hour-test-str-loophole) - [The 7-Day Rule Guide](/blog/7-day-rule-str-loophole) - [Cost Seg + STR Loophole](/blog/cost-segregation-str-loophole) - [Using the STR Loophole with a PM](/blog/str-loophole-property-manager) © 2026 STR Loophole. All rights reserved. STR Loophole is not a tax advisor. Consult a qualified CPA.