What Your CPA Isn't Telling You About Short-Term Rentals | Andrew Khubiar and Kirby Kwok

In this episode of The Luxe and the Short of It, Madeleine is joined by tax strategists Andrew Khubiar and Kirby Kwok from Imperium Advisory. Together, they pull back the curtain on short-term rental (STR) tax loopholes, common CPA blunders that cost investors hundreds of thousands of dollars, and why educating clients to take control of their financial picture is the ultimate path to long-term wealth.

Key TakeawaysThe $400k+ CPA Mistake: Many traditional tax preparers default to marking real estate losses as "passive" out of over-caution or lack of STR knowledge. Working with a specialized STR tax strategist can uncover massive missed deductions—like bonus depreciation.The 7-Day Rule: Under IRS tax code, if the average guest stay is seven days or less, it is not classified as a traditional rental activity. This unlocks unique tax strategies distinct from long-term rentals.Setup Time Counts Toward Material Participation: You don't need to spend hours managing guests every week to hit the 100-hour threshold. Time spent on the initial physical and digital setup, interior design, and system automation counts toward your material participation for that initial tax year.The Aggregation Election Power: If you own multiple STR properties and have automated systems in place, taking the aggregation election allows you to treat all properties as a single activity—making it much easier to meet the material participation hour requirements across your entire portfolio."Imperium" Mindset: Financial freedom isn't about giving total control away to an outside firm. True wealth creation comes from educating yourself (and passing that knowledge to your children) so you remain in the driver's seat of your financial empire.

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The views, information, or opinions expressed during this podcast are solely those of the individuals involved and do not necessarily represent those of The Luxe & the Short of It podcast or its affiliates. The content provided is