STR Tax Calculator

📋 Not sure what your taxable income is? Start here.

Find your most recent Form 1040

This is your federal tax return. Your CPA or tax software (TurboTax, H&R Block, etc.) has this. You can also download it from IRS.gov under "Get Transcript."

Look at Line 15 — "Taxable income"

This is the number after all of your current deductions have already been subtracted. It is NOT your salary or gross income. Line 15 is the exact number this strategy targets and reduces.

Know your income type

W-2 employees: Taxable income starts with Box 1 of your W-2, minus deductions.
Business owners: Schedule C or E feeds into your 1040 — use Line 15 as your number.
Investors: Capital gains are on Schedule D but taxed at different rates — STR depreciation mainly offsets ordinary income.

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Your taxable income (Line 15) is typically $30,000–$80,000 lower than your gross salary once standard deductions apply. Always use Line 15, not your paycheck or W-2 Box 1.

Your income & filing status

Taxable income $250,000

Form 1040, Line 15 — after all current deductions

Filing status

How much cash are you comfortable investing?

Select a range so we can flag which property scenarios fit your budget and highlight the best match for your situation.

Property scenario

Quick scenarios

Or customize below

Purchase price $400,000

Down payment 20%

FF&E / Furnishings $30,000

Average $12,000 – $18,000 per bedroom. Higher-end finishes command stronger nightly rates.

Cost seg % 30%

Typical range: 20–40%. Higher for furnished vacation properties.

Interest rate 6.75%

STR / investment property rates typically run 0.5–1% above primary residence rates.

Your cash to get in — and why the property covers the rest

Cash required at closing

Down payment	—
Closing costs (~3%)	—
FF&E / Furnishings	—
Total cash needed	—
After tax savings	—

"After tax savings" shows your net effective investment once first-year federal tax savings are applied — money that would have gone to the IRS goes into this asset instead.

Estimated monthly mortgage (30-yr fixed)

Estimated year-one tax results

Estimated federal tax saved in year one

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Total deductions generated

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Taxable income after strategy

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Where the deductions come from

Key insight

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All figures are illustrative scenarios only and are not tax or financial advice. Results assume material participation, average guest stay under 7 days, 100% bonus depreciation under current law, and operating expenses of ~3% of purchase price. Mortgage estimates use a 30-year fixed amortization on principal and interest only. Cash-to-close figures are estimates. Consult your CPA and a licensed mortgage professional before any investment decision.