Hello my YouTube friends its Richard founder of STRU
and Airbnb super host on this video we're gonna talk about the tax reform
and its implications for homeownership and specifically short-term rental
ownership on a go-forward basis so before people get out of whack and I
start to like wrestle feathers let's just say this and by the way I don't
mind wrestling feathers but this isn't a political statement
I have no like skin in the game I'm not for or against I'm just an entrepreneur
I take the facts I see what they are I make the most of them I view them all as
an opportunity and I want to share with you what I see I've got this vision in
the future where homeownership and short-term rental of that home are
interchangeable like everyone is sort of doing it and I've sort of said that
that's the future so while it might be early stages today and I think we're in
like maybe the first or second inning I think when my kids own homes
it's gonna be natural for them to go away for a wedding and to rent their
home out or they're gonna go away for the month of August on vacation and
they'll rent their home out so I just think that over time it will become more
and more embraced more and more natural and everyone will be doing it and the
reform that's on the table right now actually encourages exactly that why
well it's pretty simple and again it's more prevalent in on the coastal states
and where real estates more expensive and let's just put that aside again not
a political statement but what the new tax reform that's proposed suggests is
that homeownership for individual the mortgage deduction is decreased from a
million dollars to 750,000 so therefore it makes homeownership more expensive if
you own a home of that size and then at the same time if your property taxes are
more than $10,000 you're capped at the amount of the tax deduction again a
really good problem to have but a problem nonetheless however and here's
the clever thing and this is where I want your ears to perk up to the extent
that it's a business like your home is an air B&B and short term rental
business those deductions are fully allowed by the law you have to sit and
you have to speak with your CPA and you have to understand the rules you can't
just like own your home and rent it out for one night and deduct the whole thing
but if you embrace the lifestyle and this is something that you want to do
and you're creating a business and you have a shared room and you do it all the
time or you you know do it a majority of the time just speak to your CPA and
understand the deductibility I don't want anybody to get in any trouble from
anything that I'm saying I'm just talking about the law the law permits
real estate businesses including short-term rental businesses and air and
B businesses to deduct mortgage expense no matter how much the mortgage expense
is it could be well over a million dollars that's deductible the second
thing that the law does is allows all property taxes to be an expense so
doesn't work for an individual but it does work for a business and that's a
really good thing for Ric the hockey puck going in the future where we're one
in the same so what's the point of all this what's one to do well we don't know
exactly because it's not passed just yet the 218 margin has been cleared that
means that this bill has the votes to carry but furthermore whatever the
currents are we'll take a little while before we feel them in the real estate
markets I've read a lot of people who suggest that real estate will actually
decrease in value because if you think about it it's become more expensive to
own real estate well if you're an entrepreneur looking to buy single
family homes to expand your short term rental business lower prices is a good
time to buy so that's a good thing the second thing it's going to do is make
owning real estate that's available for rental more popular more people are
going to do it that's gonna have a counterbalancing effect the more people
that want to own these kinds of homes generally will drive the price up so I
just gave you an example where the price goes down and another example where the
price goes up you want to be paying attention you want to have all your
ducks in a row you want to have your mortgage financing and your credit score
and everything else available so if prices go down you buy and then
ride the wave up that's a really great opportunity so look how this actually
plays out is anybody's game I'm just trying to give you one person's insight
as to what I'm looking for and the main message is this wherever there's
adversity wherever there's confusion wherever there's like unknown and
unintended consequences there's also a lot of opportunity
you have to keep your ear to the ground and be paying attention to be ready to
pounce because if that scenario occurs where like there is a sell-off in your
neighborhood or in a place where you want to buy you need to be able to act
quickly because I don't think it's gonna be around for like forever as I just
suggested I have this vision where the world is gonna normalize everyone's
gonna be renting out their property everyone's gonna be taking advantage of
some of these deductions so that opportunity might be fleeting and I'd
like to have you prepared I hope you've enjoyed it I'd love to hear your
comments please go ahead and share and like the video and if you haven't
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