Physicians nearing retirement still have valuable high-income years to plan around, and short-term rental (STR) tax strategies can help. STR depreciation doesn’t require a years-long commitment; acquiring the property while still earning substantial income allows deductions to be taken in a higher-income year rather than after retirement. Material participation requirements can feel unrealistic alongside a demanding medical career, but a professionally managed structure with an operating partner can reduce the day-to-day workload while helping document qualifying activities. Starting the strategy a few years before retirement, rather than in the final year, allows more time to evaluate the property and establish consistent documentation. Ultimately, a conversation with a qualified tax advisor can help determine whether an STR strategy fits a physician’s remaining high-income years and long-term retirement plans.
source: https://www.elkridgeinvestments.com/tax-planning-for-physicians-near-retirement/
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