Marcus & Dana
Tech Leads + Airbnb Hosts · Austin, TX · Age 38
Married Filing JointlyIncome: $600KTechCouplesReal Estate
“Our STR was the best tax shelter we'd ever own.”
The Situation
Both W-2 tech employees ($300K each)
Own a $650K short-term rental (Airbnb)
Dana manages the STR (600+ hours/year)
Strategies Identified
1. Cost Segregation + Bonus Depreciation
IRC §168(k)
$28,400
Cost seg study reclassifies $260K of $650K property. 100% bonus depreciation in year one.
2. STR Material Participation Losses
IRC §469(c)(2)
$18,500
Dana's 600+ hours qualifies as material participation. STR losses offset W-2 income directly.
3. Augusta Rule (14-Day Rental)
IRC §280A(g)
$5,600
Rent primary home to Dana's consulting LLC for team offsites. 14 days x $400/day = tax-free income.
4. Mega Backdoor Roth (Both Spouses)
IRC §415(c)
$4,800
Both employers allow after-tax. Combined $92K into Roth annually.
Tax Impact
Before
$198,000
→
After
$140,700
Annual Savings
$57,300
29% reduction
Action Steps
1
Order cost seg study on the STR property
2
Start contemporaneous hour log for Dana's STR management
3
Schedule 12 business offsites at primary home this year
4
Verify both employer plans allow after-tax contributions
What could you save?
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