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- Hey guys, in this video, Im gonna show you one phenomenal tax play with short-term rentals that can put a ton of money back in your pocket. Okay, lets get started. (upbeat music) All right, so heres the thing about short rentals. All right, its the renting of real estate. And you may think that the income or the losses you bring in from short-term rentals just kind of flows onto your tax return on your schedule lead just like all of your other rental income. Well, if thats the way youre looking at it, youre wrong. When it comes to short-term rentals, you can actually treat those as a trade or business if you meet certain tests under the internal revenue code. This is something that so many high income earners are missing out on. When I talked to a lot of people many times, they tell me this, hey, Clint, I wanna be classified as a real estate professional. And if youve seen my other video on what it takes to be a real estate professional, and you know what that means, 750 hour
