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Judge weighing future of DC golf course doesn’t want to be Amy Poehler while Trump remakes parks



A federal judge weighing the future of an expansive Washington park insisted this week she had no intention of becoming Amy Poehler, the actress who spent seven seasons memorably playing the head of a local parks and recreation department.

But President Donald Trump might be interested in the role.

Shortly after the United States and Iran exchanged fire on Thursday, Trump made a quick jaunt to the National Mall to review the Lincoln Memorial Reflecting Pool that he ordered repainted a color he describes as “American flag blue.”

The project has been on his mind lately. During an hour-plus speech Monday to small-business owners, Trump spent about nine minutes talking about the paint job, detailing the granite floor and boasting that he whittled the renovation’s cost to $1.9 million from what he said was an initial $350 million estimate.

Trump’s next project might be East Potomac Park, home to an affordable, accessible public golf course with views of the Washington Monument.

The Republican president has talked of transforming it into a posh “U.S. Open-caliber course.” Signs were posted this week warning of a disruption and preservation advocates took the government to court as debris dumped there from the White House East Wing demolition tested positive for lead.

By late Friday, the nonprofit that operates the course said it would continue managing the space until the National Park Service begins a “historic restoration.”

Meanwhile, the White House told a planning agency that it would cost taxpayers at least $7.5 million to follow through on Trump’s plan to paint the granite Eisenhower Executive Office Building white.

And that was just this week in Washington’s extreme makeover.

All the president’s projects

Over the past year, Trump has bulldozed the East Wing to make way for a ballroom. His name was added to the facades of the U.S. Institute of Peace and the Kennedy Center, which he plans to close for a two-year renovation. His face adorns a banner at the Department of Justice’s headquarters, among others. He is pushing for a triumphal arch near Arlington Cemetery and has closed parks, including Lafayette Square across from the White House, for a rehab.

Trump is guaranteeing himself a lasting imprint on a city where he won just 6.5% of the vote in 2024. He is flexing extraordinary executive power and offering fresh insight into how he spends his time, perhaps a president’s most valuable asset.

As the Washington projects unfolded this week, the ceasefire in Iran was at risk of unraveling, motor club AAA said the average price of a gallon of gas surpassed $4.50 and elections provided new evidence of Democratic enthusiasm heading into the November elections.

“It’s not a zero-sum game but obviously all presidents have limited amounts of capital they can use and limited amounts of attention that they have to give,” said presidential historian Julian Zelizer of Princeton University. “And he’s deciding, in a moment of war, a moment of economic instability, that this is a priority.”

Trump rejects such concerns.

Asked at the Reflecting Pool why he was focused on the project given the U.S. military action in Iran, he said, “Our country is about beauty, cleanliness, safety, great people. Not a filthy capital.”

Political considerations for Republicans

For Republicans defending slim congressional majorities, it is not so simple. Many would prefer to talk about policy accomplishments, including tax cuts, rather than multimillion-dollar Washington construction projects.

While few directly criticize Trump, there is an acknowledgment that the party needs to confront economic realities.

“A lot of Americans are very worried about the cost of living and we need to address it,” Sen. John Kennedy, R-La., said recently.

A Washington Post-ABC News-Ipsos poll conducted in late April found that 52% percent of Americans oppose Trump’s planned arch. That includes about 6 in 10 independents. Some 51% of Republicans favor it.

Americans oppose the ballroom by a 2-to-1 margin, driven largely by Democrats and independents. About 2 in 10 Republicans oppose the project, according to the poll. The poll did not find a notable shift in support of the ballroom after a shooting at last month’s White House Correspondents’ Association Dinner. Trump has cited that incident in his push for a secure facility, something he did not mention when he initially ordered the demolition of the East Wing.

Trump is showing no sign of backing away from any of the projects. In a sign of the GOP’s loyalty to him, Republican senators added $1 billion in White House security upgrades for the ballroom to an unrelated bill this week. Trump initially said taxpayer money would not be needed.

A dizzying pace of change in Washington

In a city where historic preservation is often sacred, the pace of change has been dizzying.

Rebecca Miller, the executive director of DC Preservation League, has spent 23 years at the organization, which sued to stop the golf course takeover and joined a coalition attempting to force the Kennedy Center to comply with preservation laws. She said her organization has worked with administrations of both parties and called the Trump moves “highly unusual.”

“One of the problems that we have right now is an administration that seems to think that it can just plow ahead without any input,” she said. “These assets are owned by the people of the United States. They’re not anybody’s personal portfolio.”

White House spokeswoman Taylor Rogers said Trump is “laser-focused on lowering costs for working families, deporting illegal criminals, keeping our cities safe, beautifying our nation’s capital, and protecting our national security by ensuring Iran can never possess a nuclear weapon all at the same time.”

This is not the first time a White House has taken an interest in Washington’s appearance.

During Lyndon Johnson’s administration, first lady Lady Bird Johnson oversaw beautification efforts that included planting trees and flowers throughout the District of Columbia.

Her efforts were sometimes derided as distractions from other pressing issues, such as the Vietnam War. But she implemented them in coordination with local officials.

“Lady Bird Johnson was trying to bring out the natural beauty of Washington,” said Mark Updegrove, chairman of the LBJ Foundation and a presidential historian. “Donald Trump is trying to remake the nation’s capital in his own image.”

Trump’s assertion of power over Washington, including the continued deployment of National Guard troops, has animated the city’s Democratic primary next month for key local offices, including mayor and delegate to Congress.

The first question at a forum for mayoral candidates this week focused on how to protect the Home Rule Act, the 1973 law that gave the city limited self-government. The candidates said they would stand up to Trump as needed, though one contender, Vincent Orange, noted that national Democrats had also failed the district.

“The two times that we had an opportunity at statehood, it was the Democrats who let us down,” he said, referring to failed congressional attempts to make the city a state with full rights of representation.

In an interview, Janeese Lewis George, a D.C. Council member and top candidate in the mayor’s race, said city officials need to do a better job of making their case in Congress for statehood. She said Trump’s impact on the city is broader than the renovations, as she referred to the troop deployments as a “federal occupation” and noted the fallout from immigration enforcement activity and cuts to the federal workforce.

“The people of our city are afraid,” she said. “It’s the mayor’s job to really let the nation know that D.C. has uniquely been left vulnerable.”

Tom Davis, a Virginia Republican who often supported the city’s autonomy when he was a congressman, said the renovations offer an “opportunity to bring some money into the city and spruce up stuff that you wouldn’t have had otherwise.”

“But this is tough,” he said. “This is not a city that is in love with the president.”

International Finance Final Revision | TYBMS SEM VI | Part 1 | 100% Exam Focus | Dr. Mihir Shah



📘 International Finance Final Revision | TYBMS SEM VI | Part 1 | 100% Exam Focus | Dr. Mihir Shah

Prepare for your TYBMS SEM VI International Finance exam with this complete final revision lecture by Dr. Mihir Shah. This video is specially designed for last-minute preparation, covering important concepts, expected questions, and key topics frequently asked in University exams (2019–2025 pattern).

🎯 This session includes:
• Concept clarity in simple language
• Most important theory for exams
• Frequently asked university questions
• Quick revision for maximum marks
• Focus on scoring topics
• Exam-oriented explanation
• Time-saving preparation strategy

📊 Perfect for 1-day revision, night before exam, or concept strengthening.

👨‍🏫 Ideal for students of:
• TYBMS SEM VI
• BMS Finance specialization
• University of Mumbai students
• Students preparing for internal & final exams

📌 Study smart, revise fast, and score high with this 100% exam-focused revision series.

📚 Topics Covered in Part 1 (based on syllabus):
• Foreign Exchange Market – Meaning & Features
• Exchange Rate Determination
• Balance of Payments
• International Monetary System
• Purchasing Power Parity Theory
• Interest Rate Parity Theory
• Types of Exchange Rate Systems
• Spot vs Forward Market
• Direct & Indirect Quotes

👍 Benefits of this video:
✔ Quick revision before exam
✔ Covers important theoretical concepts
✔ Based on previous year question papers
✔ Helps in scoring high marks
✔ Easy explanation for fast understanding

📢 Watch full playlist for complete revision of International Finance (TYBMS SEM VI)

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$50 Signup Bonus for Polymarket


$50 Signup Bonus for Polymarket

Polymarket is offering a $50 bonus when you deposit $20. Must use promo code FREE50 when you sign up in order to get the bonus.

You can see the offer here. App is only available in iOS.

Polymarket is a prediction market platform where users can bet on the outcome of real-world events. Unlike traditional sports betting, Polymarket allows participants to trade “shares” of future occurrences across categories like politics, business, technology, pop culture and more.

HT: DoC

AI Is Reshaping Bank Risk


To address these gaps, leading banks are adopting holistic AI risk and control approaches that treat AI as an enterprise-wide risk rather than a technical tool. Effective frameworks embed accountability, transparency, and resilience across the AI lifecycle and are typically built around five core pillars.

1. Board-Level Oversight of AI Risk
AI oversight begins at the top. Boards and executive committees must have clear visibility into where AI is used in critical decisions, the associated financial, regulatory, and ethical risks, and the institution’s tolerance for model error or bias. Some banks have established AI or digital ethics committees to ensure alignment between strategic intent, risk appetite, and societal expectations. Board-level engagement ensures accountability, reduces ambiguity in decision rights, and signals to regulators that AI governance is treated as a core risk discipline.

2. Model Transparency and Validation
Explainability must be embedded in AI system design rather than retrofitted after deployment. Leading banks prefer interpretable models for high-impact decisions such as credit or lending limits and conduct independent validation, stress testing, and bias detection. They maintain “human-readable” model documentation to support audits, regulatory reviews, and internal oversight.

Model validation teams now require cross-disciplinary expertise in data science, behavioral statistics, ethics, and finance to ensure decisions are accurate, fair, and defensible. For example, during the deployment of an AI-driven credit scoring system, a bank may establish a validation team comprising data scientists, risk managers, and legal advisors. The team continuously tests the model for bias against protected groups, validates output accuracy, and ensures that decision rules can be explained to regulators.

3. Data Governance as a Strategic Control
Data is the lifeblood of AI, and robust oversight is essential. Banks must establish:

  • Clear ownership of data sources, features, and transformations
  • Continuous monitoring for data drift, bias, or quality degradation
  • Strong privacy, consent, and cybersecurity safeguards

Without disciplined data governance, even the most sophisticated AI models will eventually fail, undermining operational resilience and regulatory compliance. Consider the example of transaction monitoring AI for AML compliance. If input data contains errors, duplicates, or gaps, the system may fail to detect suspicious behavior. Conversely, overly sensitive data processing could generate a flood of false positives, overwhelming compliance teams and creating inefficiencies.

4. Human-in-the-Loop Decision Making
Automation should not mean abdication of judgment. High-risk decisions—such as large credit approvals, fraud escalations, trading limits, or customer complaints—require human oversight, particularly for edge cases or anomalies. These instances help train employees to understand the strengths and limitations of AI systems and empower staff to override AI outputs with clear accountability.

A recent survey of global banks found that firms with structured human-in-the-loop processes reduced model-related incidents by nearly 40% compared to fully automated systems. This hybrid model ensures efficiency without sacrificing control, transparency, or ethical decision-making.

5. Continuous Monitoring, Scenario Testing, and Stress Simulations
AI risk is dynamic, requiring proactive monitoring to identify emerging vulnerabilities before they escalate into crises. Leading banks use real-time dashboards to track AI performance and early-warning indicators, conduct scenario analyses for extreme but plausible events, including adversarial attacks or sudden market shocks, and continuously update controls, policies, and escalation protocols as models and data evolve.

For instance, a bank running scenario tests may simulate a sudden drop in macroeconomic indicators, observing how its AI-driven credit portfolio responds. Any signs of systematic misclassification can be remediated before impacting customers or regulators.

The Leadership Mindset Behind High-Performing Teams



Servant leadership isn’t soft. It’s strategic.

Two Reasons Mortgage Rates Aren’t Rising Despite Hot Jobs and Expensive Oil


You would think with oil remaining around $100 per barrel and yet another jobs report beat that we’d have higher mortgage rates.

Instead, they’re continuing to fall and extending a nice little rally this week.

It seems odd on the surface as both inflation from higher oil prices and hot jobs tend to lead to higher interest rates.

The reason why they appear to be defying expectations is because these two things aren’t seen as lasting trends.

Instead, they are being treated as blips in a bigger story that points toward slowing growth, weaker labor, and an end to the war.

Mortgage Rates Feel Like a Headscratcher Lately

Mortgage rates can be pretty complex. There are a lot of forces at play that determine whether they go up or down.

Factors include inflation, labor, mortgage-backed securities (MBS) supply and demand, and many other drivers.

In normal times, things like rising inflation or a hot jobs report lead to higher mortgage rates.

The opposite is also true. If unemployment is rising or inflation is easing, mortgage rates typically go down.

Lately, it’s been kind of confusing because we’ve got $100+ oil due to the conflict in the Middle East.

And a series of “hot” jobs reports, including the ADP report on Wednesday and the BLS report today.

Both were beats, which in normal times would lead to higher mortgage rates. Especially if you’ve got expensive oil.

Instead, mortgage rates continue to drift lower, as if they’re ignoring both these issues entirely.

Everyone Thinks Oil Prices Will Come Down and Labor Will Get Worse

The simple explanation is that bond traders and MBS investors believe both pricey oil and hot labor to be transitory at best.

Simply put, they aren’t seen as long-term trends. They’re seen as fleeting issues that will go away sooner rather than later.

As such, they’re looking past them and continuing to hold the belief that labor is going to crack and that inflation is going to continue to ease.

That is benefiting mortgage rates when it otherwise might not.

So if you’re currently shopping for a home or looking to refinance a mortgage, be grateful.

Things could be a lot worse. Mortgage rates could be on the other side of 6.50% and rising.

Instead, they’re staying closer to the lower-end of the 6% range, and remain only about a half-point above 3.5-year lows.

That’s pretty good in the grand scheme of things.

Just one caveat though. If everyone all of a sudden decides that expensive oil isn’t temporary, or that labor is in fact not so bad, mortgage rates could jump back up again.

Personally, I still think that’s a possibility, though I’m rooting for lower mortgage rates because the housing market badly needs them.

Colin Robertson
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Tired of Being Burned by Crypto? Chainlink Actually Powers Real‑World Finance.


In the years that I’ve been investing in cryptocurrency, I’ve been burned more times than I care to remember. For example, I bought Polkadot in 2021, when it looked like it might one day compete with Ethereum. Since then, it has fallen by more than 95% and is unlikely to ever regain its mojo.

Image source: Getty Images.

That is par for the course with crypto investing. It is a relatively new and speculative asset class, and even projects with seemingly solid prospects can go south. People take the risk because cryptocurrencies can also generate outsized returns. Looking to the coming five to 10 years, that potential is what makes Chainlink (LINK +2.58%), which is already being used in mainstream finance, worth a closer look.

Chainlink Stock Quote

Today’s Change

(2.58%) $0.26

Current Price

$10.33

How Chainlink connects blockchain with real-world finance

My investment thesis for Chainlink rests on two premises. First, real-world asset tokenization and stablecoins could propel serious mainstream blockchain adoption. Second, Chainlink’s first-mover advantage, partnerships, and reputation mean that it is uniquely placed to benefit from that change.

Tokenization is a way to record ownership of a host of assets on the blockchain. Advantages include round-the-clock trading, fractional ownership, reduced transaction costs, and built-in compliance. A token might represent a share in a listed company, a bond, or a piece of real estate. Stablecoins, for example, are tokenized versions of traditional currencies such as the U.S. dollar.

To give you an idea of how quickly the market is growing, the value of tokenized real-world assets grew from $5.8 billion to $21.5 billion in 2025 alone, and some predict it will be worth trillions by 2030. For that to happen, a lot of regulatory and technical work still needs to be done, but tokenization could embed blockchain into the global financial infrastructure. That is a big deal for several cryptocurrencies, particularly Chainlink, which plays a crucial role in the technical side.

Chainlink is known as an “oracle” cryptocurrency because it aggregates and verifies data streams from various blockchains and the real world, ensuring tokenized products are based on accurate information. That includes providing U.S. equities and exchange-traded fund (ETF) data streams for emerging tokenized stock-trading platforms.

That brings me to my second point. No other oracle crypto boasts the breadth or depth of partnerships that Chainlink has. It is working with almost all the big names in finance and beyond that are exploring blockchain integration — including the U.S. government, Visa, Mastercard, and Swift.

Major financial institutions such as UBS and BNP Paribas are tapping into Chainlink’s services. For example, UBS and Chainlink recently announced a successful collaboration on a tokenized workflow that integrates every stage of the process on- and off-chain.

It’s all about managing risk

If you’ve lost money on crypto, getting back on the digital asset train can feel like throwing good money after bad. What matters is understanding the level of risk you are comfortable with and building a balanced portfolio accordingly. Make sure that high-risk assets, like crypto, make up only a small percentage of your broader investments.

I’m much more cautious than I was during the 2021 crypto frenzy, but I haven’t given up on cryptocurrency completely. Polkadot may have fallen, but the lead crypto Bitcoin has gained over 40% in the past five years, and Solana has almost doubled. More importantly, after years of promises and maybes, there are finally concrete examples of crypto entering real-world finance, giving projects like Chainlink the potential to soar.

JetBlue Premier Card 100,000 Points Signup Bonus (New Benefits Live)


Update 5/8/26: Now possible to get this card even if you’ve held the JetBlue Plus in the past. As long as you’re approved for this card, you’re eligible for the sign up bonus. 

The Offer

Direct Link to offer

  • Signup for the Barclays JetBlue Premier card and get 100,000 bonus points after spending $5,000 (and paying the annual fee in full) within 90 days.

Card Details

  • $499 annual fee ($150 for authorized cardholders)
  • TrueBlue Travel Statement Credits: Up to $300 in annual statement credits on hotels, car rentals, cruises and more using the JetBlue booking system. (No minimum spend required. Entire $300 can be used in a single booking.)
  • 15% Redemption Rebate: Cardmembers receive 15% of their TrueBlue points back on all award flight redemptions, whether flying JetBlue or its partner airlines.
  • JetBlue Premier Companion Pass Credit: Earn a companion pass (up to $500) after $15K in annual spend, or up to $1,500 after $75K, just book your companion’s trip and receive a statement credit post-travel.
  • 25-Tile Bonus: Cardmembers start each calendar year with 25 tiles, getting them halfway to Mosaic 1 status before their first flight.
  • ClassPass Credits: A new ClassPass partnership gives Cardmembers up to 14 monthly credits for fitness classes and wellness experiences at studios, spas, salons, gyms and more nationwide.
  • BlueHouse Access (Cardholder + One Guest)
  • Priority Pass select
  • Group A boarding
  • Free checked bag
  • Card earns:
    • 6x points on JetBlue & Paisly purchases
    • 2x points at restaurants and grocery stores
    • 1x points elsewhere

Our Verdict

This card launched in early 2025 with a 70,000 points signup bonus which increased a few months later to 80,000. This new 100k offer is highest ever, but they did remove the 5 tiles initial bonus. 

At the same time, the new benefits we discussed last month are now live, including the travel credit becoming much more valuable, the 15% redemption rebate, the Companion Pass benefit, and more (as outlined in the Card Details, above). 

With the new 100k offer and the improved benefits, I can see many being interested in the card despite the $499 annual fee, especially for the first year. We’ll add this to our list of Best Current Credit Card Signup Bonuses. 

XRP Live Trading Signals XRPUSDT Best Trading Crypto Strategy ( Supply and Demand zones )



Welcome,

What you see is Educational LIVE Chart for XRP
– Easy to read and understand
– With clean and simple setup

Chart is set to M5 Timeframe , what means that every Candle = 5 minutes
Pair you see on chart is XRP/ USDT
MADE FOR THIS CHANNEL AND YOUTUBE COMMUNITY ONLY
WE SHOW HOW TO CORRECTLY UNDERSTAND THE CHART. WE DO NOT TRADE HERE.

🟡 This live stream displays a trading chart. It’s a standard chart, but unlike other platforms, it’s modified to show the current market developments in a simple form and easy to understand.

🟡 The purpose of this live broadcast is to teach you basic rules and has an educational nature. On this live stream, we demonstrate how to correctly understand the market and price movements.

🟡 We do not take risks, trade, sell, or offer any financial services, and we abide by all the rules of the YouTube community.

____________________________________________________________________________________________

🛠️ HOW TO CORRECTLY UNDERSTAND SUPPLY AND DEMAND ZONES :

1, Identify supply and demand zones:
Green rectangles represent supply zone.
Orange rectangles represent demand zone.

2, Enter a potential trade in demand or supply zones:
When the price enters an orange zone (demand), check if your indicator generates a BUY SIGNAL, which could be a potential signal to buy.

When the price enters a green zone (supply), check if your indicator generates a SELL SIGNAL, which could be a potential signal to sell.

3, Enter only with confirmation from supply and demand zones:
Before entering a trade, confirm that the BUY SIGNAL or SELL SIGNAL aligns with the current supply or demand zone. The signal is stronger when it is closer to the zone, and it’s recommended to use signals that are directly within the zones. This provides a more robust confirmation of the potential trade setup.

4, Risk management.
Determine the amount of risk for each trade and adhere to risk management principles. ALWAYS Set a stop-loss to minimize losses.

5, Experiment on a demo account:
Learn and Experiment with it on a demo accounts do not use real money to better understand its behavior.

6, Watch for potential divergences:
Monitor situations where the price enters a supply or demand zone, but the indicator does not provide a corresponding signal. This may indicate a potential divergence and requires caution.

7, Monitor macroeconomic events:
Stay informed about macroeconomic events that could impact the market, as such events may influence the effectiveness of the indicator.

🚩SIGNAL CONFIRMATION RULE: Market conditions change every second.
It is crucial to wait for the signal candle to close to confirm the validity of the signal.
Patience is key, as the signal may disappear if not confirmed by the closing of the candle. Sucess rate here is between 72-81% on last 1000 trades, many times Signals are not correct or late, use them with demo or paper accounts only !

GUIDE ON HOW TO UNDERSTAND SIGNALS and ZONES in our LIVE STREAMS is here:
🌎

🔴🟢🟡🔵 Explanation of the colors in the order book

GREEN indicates a completed buy order.
RED indicates a completed short order.
YELLOW indicates the liquidation of a long position (a trade that used leverage and was liquidated)
BLUE indicates the liquidation of a short position (a trade that used leverage and was liquidated)

CHART DATA SOURCE : TRADINGVIEW www.tradingview.com
BOOK MAP SOURCE : THE KINGFISHER

⚠️ Disclaimer:
We would like to emphasize that the information provided in our live stream, including the live trading chart with indicators, is strictly for educational purposes only and should not be construed as financial advice. It is crucial to conduct your own research and consult with a licensed financial professional before making any financial decisions,

❕ We are YouTubers, we dont trade on youtube
❕ We don’t take risks or gamble here !
❕ Everything you see here is created with the goal of teaching and educating.
❕ BE RESPONSIBLE TO YOUR SELF
❕ WE ARE NOT ENGAGING IN TRADING ON YOUTUBE !
❕ WE DO NOT OFFER ANY FINANCIAL OR MONEY RISK SERVICES.

Transparency and Disclosure:
I want to be clear that I have no financial relationships, affiliations, or sponsorships with any companies or institutions mentioned in this live stream. My analysis is unbiased and based on independent research. Remember to conduct your own research, as trading involves risks.

_____________________________________________________________________________

🌍 CHANNEL WEB SITE : www.forexeducation.live
🌍 Twitter X :

Watch XRP Live Chart here:

🌍 Mix :
🌍 Facebook Group :
🌍 Blogger :
🌍 Rdddit :
🌍 email : settings51@gmai.com

WE ARE BIG FAN OF TRADERS REALITY :

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Does It Change the Tax Strategy?


This article is presented by Cost Segregation Guys.

One of the most common questions I get from real estate investors is whether owning a short-term rental changes how they should think about taxes.

The short answer is yes, and in some cases significantly. The type of rental you own affects how your income is classified, how your losses can be used, and whether strategies like cost segregation will actually move the needle for you. 

Let me walk through the key differences so you can see where you stand.

STR vs. Long-Term Rental Tax Treatment Basics

When you own a long-term rental, the income you earn is treated as passive income under the tax code. That means if your property generates a loss, which is common in the early years when depreciation is high, that loss can only be used to offset other passive income. 

Unless you qualify as a real estate professional, you generally cannot use rental losses to offset your W-2 or business income. There are some exceptions, including a $25,000 allowance for active participants with adjusted gross income under $100,000, but for higher-income investors, passive loss limitations are a real constraint.

Short-term rentals operate under a different set of rules, which is where things get interesting. The IRS does not automatically classify STR income as passive. If you materially participate in your short-term rental, meaning you are actively involved in running it and meet one of the IRS material participation tests, the income and losses from that property are treated as non-passive. 

That one distinction opens up a door that long-term rental investors typically cannot access: the ability to use rental losses to offset ordinary income.

How Accelerated Depreciation Interacts with STR Income

This is where cost segregation becomes especially powerful for STR owners. When you commission a cost segregation study on a short-term rental, you are not just accelerating depreciation in the abstract. If your STR qualifies as non-passive activity through material participation, the large depreciation deductions generated by a cost seg study can flow directly against your ordinary income in the year you take them. For an investor in a high tax bracket, that can mean tens of thousands of dollars in real tax savings in year one.

For long-term rental owners, the math is different. A cost segregation study will still generate substantial accelerated depreciation, but if you cannot use those losses against ordinary income due to passive activity rules, they carry forward until you have passive income to absorb them or until you sell the property. The deductions are not lost, but they are deferred, and deferred savings are worth less than immediate savings.

There is an important exception here for real estate professionals. If you or your spouse qualifies as a real estate professional under IRC Section 469, your rental activities are not subject to the passive loss rules, and accelerated depreciation from a cost seg study on any of your rentals can offset ordinary income. 

This is a significant planning opportunity, but the requirements are strict: You must spend more than 750 hours per year in real estate activities and more than half of your total working hours in real estate.

Who Benefits More, and Why

STR investors who materially participate in their properties are often the biggest beneficiaries of cost segregation, particularly in the first few years of ownership when bonus depreciation is in play. The combination of non-passive treatment and accelerated depreciation can create a paper loss large enough to eliminate a significant portion of the investor’s tax bill for that year, even when the property itself is cash flow positive.

Long-term rental investors still benefit from cost segregation, but the benefit profile looks different. The value tends to show up over time as losses offset passive income from other properties or as a large deduction in the year of sale. Investors who own multiple long-term rentals and generate passive income across their portfolio can often absorb the losses generated by a cost seg study more effectively than someone with a single property and no other passive income.

The investor who benefits least from cost segregation is someone who owns a single long-term rental, earns a high W-2 income, does not qualify as a real estate professional, and has no other passive income to absorb the losses. That does not mean cost segregation is useless in that situation, but it does mean the timing of the benefit is different, and the study needs to be evaluated accordingly.

Situations Where Cost Seg Timing Matters

Timing is not just about when you do the study. It is about making sure the depreciation hits in a year when you can actually use it.

Year of purchase

The best time for most investors to do a cost segregation study is in the same year they purchase or place the property in service. This is when bonus depreciation can be applied to the reclassified assets, and it is when the deductions are largest. Waiting a year or two does not eliminate the benefit, but it does reduce it, since bonus depreciation percentages have been stepping down each year.

Before a high-income year

If you know you are going to have an unusually high-income year, whether from a business sale, a large bonus, or a significant capital gain, that is an ideal time to accelerate depreciation on a property you own. Pairing a cost seg study with a high-income year can offset income that would otherwise be taxed at the highest marginal rates.

Before a property sale

This one surprises some investors: Taking accelerated depreciation through a cost seg study does not eliminate depreciation recapture when you sell. However, if you are planning a 1031 exchange, the recapture gets deferred along with the gain, and the accelerated deductions you took in prior years were still real savings in real dollars. The timing of a study relative to a planned sale is worth a conversation with your CPA.

When you convert an STR to a long-term rental, or vice versa

If you are converting a property from short-term to long-term use or planning to, the tax treatment of any existing cost seg study does not reset automatically. But your ability to use the losses going forward may change significantly depending on how the converted property is classified and whether material participation still applies. This is a situation where getting in front of the numbers before the conversion, not after, makes a real difference.

The bottom line is that short-term and long-term rentals are not taxed the same way, and they should not be approached with the same tax strategy. Cost segregation works for both, but the timing, the benefit size, and the mechanics are different, depending on which type of property you own and what your broader tax picture looks like.

Want to Know What Your Property Could Generate?

If you are trying to figure out whether a cost segregation study makes sense for your rental portfolio, whether it is a short-term rental, a multifamily, or a mix of both, I recommend reaching out to Cost Segregation Guys. They specialize in working with real estate investors and will run a free analysis for you before you commit to anything. They bring licensed engineers and real tax expertise together, which is exactly what you need to make sure a study is done right and holds up if the IRS ever comes knocking.