Calculator · STR loophole
Average Stay Calculator
The short-term rental loophole turns on one number: your average guest stay. Seven days or less (with material participation) and the activity can be non-passive, so losses can offset W-2 income. Check where you land.
Your year
Average length of stay
4.5 days
the test threshold is 7.0 days or less
Total nights180
Separate stays40
At 4.5 days you clear the 7-day average. Materially participate and this activity can be treated as non-passive.
Education only, not tax advice. The 7-day test is just the start; you still need to materially participate and meet the other requirements. Count nights and reservations carefully and confirm with your CPA before relying on it.