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Let me explain to you how the short term rental loophole works in less than two minutes. Let's start with active income. Active income is like your W2. So let's say in this example, you and your spouse are making $400,000 working a full time job. And then you're like, you know what, I want to buy some rentals. So what you do is you go and buy a big apartment building and you're like, oh my gosh, this is going to be great. I'm going to be able to take all those losses against my W2. Wrong. Unfortunately, this income is passive. Passive income will never offset active income unless you qualify for either the short-term rental loophole, which is exactly what most people are doing today. So what does this mean? The short-term rental loophole means you buy a property and you put it on air VMB. So let's say, for example, you purchase a property that is $500,000 and what you're going to do is you're going to make sure that you meet these two qualifications. These are extremely important if you want to do the short term rental loophole. First, you have to rent it on average seven days or less. So at least first, you have to rent it on average seven days or less. So at least you have to have two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, two rentals, seven days or less. So at least you have to have two rentals and two, you have to materially participate, meaning you cannot just have a property manager take over everything and you do nothing. If you meet both of these rules, you can actually take losses as active and guess what? They go against your W2 active income. The great thing about this is you're going to do a cost segregation, which in this case, let's say you have W2 income of 400k. After accelerating your depreciation with a cost seg, you're looking about a loss from your Airbnb of 140,000. That means you are now going to be taxed on $260,000 instead of the $400,000 that you started with.

Let me explain to you how the short term rental loophole works in less than two minutes. Let's start with active income. Active income is like your W2. So let'…