Can Airbnb Hosting Really Make Your Taxable Income $0? | Bonus Depreciation Explained

2026-02-16

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Today, Nicole breaks down the viral tax strategy everyone on social media is talking about — the claim that buying a short-term rental can legally wipe out your taxes. She explains the simple idea behind bonus depreciation, why it creates massive upfront write-offs, and how real estate investors use upgrades and accounting strategy to dramatically lower taxable income. But she also pulls back the curtain on the part influencers skip: why a $0 tax bill doesn’t automatically mean you made money, how much cash you still need to ...

Today, Nicole breaks down the viral tax strategy everyone on social media is talking about — the claim that buying a short-term rental can legally wipe out your taxes.

She explains the simple idea behind bonus depreciation, why it creates massive upfront write-offs, and how real estate investors use upgrades and accounting strategy to dramatically lower taxable income. But she also pulls back the curtain on the part influencers skip: why a $0 tax bill doesn’t automatically mean you made money, how much cash you still need to spend, and the risks hiding behind the hype.

The Money Rehab Episode About Whether Home Ownership is Overrated

Check out Nicole’s financial literacy course The Money School

Find a Financial Advisor or Financial Coach from Nicole’s company Private Wealth Collective

Watch video clips from the pod on Money Rehab’s Instagram and Nicole Lapin’s Instagram

00:00 Are You Ready for Some Money Rehab?

00:53 Bonus Depreciation 101

03:10 What Changed with the Big Beautiful Bill

03:38 What Qualifies (and What Doesn’t)

04:22 Fact-Checking the Viral Airbnb Example

05:37 The Caveats

05:54 Cost Segregation Study Workaround

07:36 Don’t Let the Tax Tail Wag the Dog’