Free tool

Does the STR loophole apply to you?

Four questions, about a minute. See where your property stands on the average-stay rule and the material participation hours, and what to take to your CPA.

General information based on our understanding of the rules, not tax advice, and not a guarantee of accuracy. We are not CPAs. Nothing you enter here is stored or sent anywhere.

1. What is the average guest stay at this property this year?7 days or less8 to 30 days, and I provide hotel-like services (daily cleaning, meals)8 to 30 days, turnover cleaning onlyMore than 30 days

2. Personal use by you or family this year14 days or fewer (and under 10% of rented days)More than that

3. Hours you (and your spouse) have worked on this property this year

4. Does anyone else work on the property (cleaner, co-host, manager, handyman)?YesNo, I do everything myself

Answer the four questions to see what your numbers suggest.

Common questions

What is the STR loophole?

A rental with an average guest stay of 7 days or less is generally not a "rental activity" under the passive loss rules. If the owner also materially participates, losses (often from depreciation) can offset ordinary income such as W-2 wages.

How many hours do I need?

Most owners aim for either 500 hours, or at least 100 hours and more than any other single individual, including cleaners and management staff. Other tests exist; your CPA can say which fits.

Does this checker tell me if I qualify?

No. It shows what your numbers suggest under the common tests so you can have a better conversation with your tax professional. It is not tax advice.

Going deeper: 7 situations where the STR loophole does not work and passing the 100-hour test with a property manager.

General information, not tax advice

This article reflects our general understanding of publicly available rules at the time it was written. We make no representation or warranty that it is accurate, complete, or current, and tax rules change.

We are not certified public accountants, attorneys, or enrolled agents, and nothing here creates a professional or advisory relationship. Outcomes turn on facts specific to you, so your situation may be treated differently from any example given.

Do not act on anything in this article without consulting a qualified tax professional about your own circumstances. To the fullest extent permitted by law, Vicherana Ventures LLC accepts no liability for any loss arising from reliance on it. STR Tracker is a record-keeping tool and does not provide tax, legal, or accounting advice.

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