SANTA ROSA BEACH, Fla., April 29, 2026 /PRNewswire/ — Short term rental investors are saving tens to hundreds of thousands in federal taxes in their first year of ownership, according to Avery Carl, founder of The Short Term Shop. The savings come from a combination of IRS provisions collectively referred to as the “short term rental tax loophole,” though Carl notes it is not a loophole at all. “It is simply the tax code as it is written, applied correctly.”
Carl’s brokerage, which has helped over 5,000 clients close just under $4 billion in short term rental transactions across 20 markets, is the largest team of short term rental realtors in the country.
How It Works
The strategy allows short term rental owners to accelerate the depreciation on their property and use it to offset regular income, including W-2 wages and business income. In simple terms, the IRS lets investors write off a large portion of their property’s value in year one rather than spreading it out over 27.5 years.
When an investor purchases a short term rental, a cost segregation study can reclassify a significant portion of the property’s value into accelerated depreciation. With 100% bonus depreciation permanently restored through the One Big Beautiful Bill Act in 2025, that entire amount can be written off in year one. And because short term rentals are classified differently than long term rentals under the tax code, investors who self-manage can use those losses to offset their regular W-2 and business income – without needing to qualify as a “real estate professional,” which is one of the most common misconceptions about the strategy. A full breakdown is available at https://theshorttermshop.com/short-term-rental-tax-loophole/
The Dollar Impact
“The actual tax savings depend on the property, the cost segregation study, and the investor’s individual tax situation, but Carl says the results can be significant — in some cases exceeding the investor’s entire down payment in year one, while the property still generates rental income and appreciates. “We have seen investors save anywhere from tens of thousands to a few hundred thousand in their first year,” said Carl, author of Short Term Rental, Long Term Wealth. “That is what is driving the demand we are seeing right now.”
The Short Term Shop works closely with top short term rental-specialized CPAs and connects clients with vetted tax professionals. Carl emphasizes that this strategy should not be attempted without a qualified CPA.
The Short Term Shop is a real estate brokerage, not a CPA firm or financial advisory service. The information in this release is for educational purposes only and should not be interpreted as tax or financial advice.
About The Short Term Shop
The Short Term Shop is the largest team of short term rental realtors in the United States with over 5,500 investor clients and 70+ licensed agents across 20 vacation rental markets. The company maintains a media platform reaching over 103,000 YouTube subscribers and has earned over 1,000 five-star Google reviews. Founded by Avery Carl, author of Short Term Rental, Long Term Wealth and Smarter Short Term Rentals. Learn more at theshorttermshop.com or call 800-898-1498.
Media Contact: Avery Carl | info@theshorttermshop.com | 800-898-1498
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SOURCE The Short Term Shop
