What Actually Triggers an IRS Audit on Rentals ft. Ana Klein

About this episode

Avery Carl and Ana Klein discuss how short term rental tax law can help high income earners reduce taxable income and avoid IRS audits.

On this week's episode, Avery is joined by Ana Klein, CEO of Tax Boss, to break down how short term rental tax law can help high income earners significantly reduce their taxable income. Ana explains how strategies like cost segregation and bonus depreciation can create large paper losses that offset W2 income, while emphasizing that these benefits only work when paired with strong investments and long term planning. The conversation dives into common misconceptions, including year-one benefits, depreciation recapture, and why trying to game real estate professional status can backfire. They also highlight the importance of proper bookkeeping, time tracking for material participation, and working with qualified professionals to avoid costly IRS audits and mistakes. How to connect with Ana: https://www.instagram.com/taxbossana/ How to connect with Avery: The Short Term Shop - https://theshorttermshop.com/ Short Term Shop Plus - stsplus.com Follow us on Instagram Follow us on TikTok Join the Short Term Shop Facebook group Check out the Short Term Shop on YouTube For more information on how to get into short term rentals, read Avery’s books: Smarter Short Term Rentals - Buy it on…

People in this episode

Host: Avery Carl

Guest: Ana Klein

Topics covered

• IRS audit
• short term rental tax law
• cost segregation
• bonus depreciation
• bookkeeping
• real estate professional status

Keywords

• IRS audit
• short term rental
• tax law
• cost segregation
• bonus depreciation
• bookkeeping
• material participation

Mentioned in this episode

Organizations: Tax Boss

Books & works: Smarter Short Term Rentals, Short-Term Rental, Long-Term Wealth: Your Guide to Analyzing, Buying, and Managing Vacation Properties

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