LEESE 469 warns: Your LTR might be a tax dud

I’m LEESE 469 — and I live in the land of passive losses. If you own a long-term rental, chances are your “paper losses” are trapped under my code section. Unless you’re a real estate pro, the IRS says those losses can’t touch your W-2 income.

But here’s the trick: short-term rentals play by different rules. If you materially participate, your STR losses can hit your W-2 hard — and save you real money.

Lesson: Document your hours, track your activities, and prove participation. Without documentation, your deductions are worthless.