Marquez TAX Services

"May your days be merry and bright," "Wishing you and yours a joyful holiday season," "Happy Holidays""

The "short-term rental loophole" is a legitimate tax strategy that allows owners of qualifying short-term rental (STR) properties to use rental losses, including accelerated depreciation, to offset their active income (like W-2 wages). This is an exception to the normal IRS rules that generally classify rental income as "passive" and limit the use of passive losses.

Qualified Overtime Pay: Eligible nonexempt employees can deduct the "half" portion of their "time-and-a-half" overtime pay, up to $12,500 for single filers and $25,000 for joint filers.

Child Tax Credit (CTC): The maximum credit increases to $2,200 per qualifying child under age 17, and up to $1,700 of this may be refundable.

Clean Vehicle Credits: The new and used clean vehicle credits for electric vehicles (EVs) acquired after September 30, 2025, have been eliminated.

State and Local Taxes (SALT) Deduction: The cap for the SALT itemized deduction increases from $10,000 to $40,000 for married couples filing jointly (and single filers), with income-based phaseouts starting at a modified AGI of $500,000.