Did I completely screw up our STR tax strategy?
Hey y'all. Need a little advice before I lose my mind.
My wife and I bought our first STR last year (cabin near a national park for $680k). We hit the 100 hour material participation rule to use the STR loophole against our W2 income. And to top it off, we paid for a cost segregation study to secure that sweet bonus depreciation.
But our CPA just raised a red flag on a big mess. The cabin came with furniture but we didn't get a breakdown of the furniture value in our closing docs. And on top of that, the cost seg company messed up the report, they double counted the new furniture we bought, and missed that the previous owner did a cost seg 3 years ago, and already depreciated half this stuff ,
Now our expected tax write-off has been cut by about 60%, and the report we paid thousands for is basically worthless. Ever been the victim of a bad cost seg report or duplicate studies from a previous owner? Did we just throw money out the window or can we correct this or modify the report before we file?
Any advice would be a lifesaver.