STRVue · How it works / The methodology

How STRVue computes your real return.

Cash flow analysis tells you what you collect minus what you spend. STRVue computes what that number misses — the tax position, the depreciation exposure, and the after-tax IRR that determine whether this property is actually working for you. Federal income tax only.

§01The gap in conventional analysis.

A short-term rental owner on a W-2 salary who materially participates in their property can offset rental losses against W-2 income under the STR exception to passive activity rules. That offset is not visible in cash flow. It is visible in STRVue.

The same property that shows −$8,400 in annual cash flow can show +$19,200 in annual tax benefit at a 32% marginal rate — a $27,600 swing that cash flow analysis never surfaces.

§02The computation starts with your tax position.

STRVue computes differently depending on how you are classified as an owner under federal tax law. There are two paths:

W-2 Active

You earn W-2 income and materially participate in your short-term rental. Under the STR exception to passive activity rules (Treas. Reg. §1.469-1T(e)(3)(ii)(A)), your STR is not treated as a rental activity. Losses flow against W-2 income directly if you materially participate.

REPS

You qualify as a Real Estate Professional under IRC §469(c)(7). You spend more than 50% of your personal service time and more than 750 hours per year in real property trades or businesses. Full passive loss offset against ordinary income. No income threshold.

STRVue does not determine which path you qualify for. Owner classification is a tax question for your CPA.

§03Six metrics. In sequence.

STRVue computes six proprietary metrics. They are designed to be read in order — each one builds on the previous.

1. Annual Tax Benefit

The starting point. How much federal tax is this property offsetting against your income this year? Computed from your marginal rate, depreciation method, and owner classification.

2. Recapture Liability Accrued

The deferred cost. Every dollar of §1250 depreciation you claim today creates a recapture liability at sale — taxed at a maximum 25% rate under IRC §1(h)(1)(D). STRVue tracks this as it accrues.

3. Depreciation Rate Arbitrage (DRA)

The permanent benefit. DRA isolates the portion of your depreciation benefit that is never recaptured — the spread between your marginal rate and the 25% recapture ceiling.

Formula: Cumulative §1250 Depreciation × (Marginal Rate − 25%). This is the only STRVue metric that is sale-independent. It exists regardless of whether or when you sell. Requires marginal rate above 25%.

4. Recapture Coverage Ratio

The balance check. Does your appreciation and equity growth cover the recapture liability you have accrued? A ratio above 1.0 means you are covered.

5. Recapture Coverage Point

The decision threshold. At what year or property value does your recapture liability become fully covered? This is the forward-looking tool for hold-period decisions.

6. True Owner Return (After-Tax Equity IRR)

The complete answer. The after-tax internal rate of return for the property owner — incorporating cash flow, annual tax benefit, principal paydown, appreciation, and recapture liability. This is what the property actually returned.

Full metric definitions →

§04Your inputs. Your numbers.

STRVue computes from the data you provide. Core inputs include:

  • Purchase price and financing terms
  • Gross annual revenue and operating expenses
  • Your federal marginal tax rate
  • Hold period and appreciation assumption
  • Cost segregation study results (optional)

No data is assumed or benchmarked. Every output traces directly to an input you provided. Federal income tax only — state tax inputs are outside scope.

§05Scope is everything.

STRVue does not advise.
STRVue does not file.
STRVue does not give a recommendation.

STRVue does not compute state income tax.
STRVue does not perform cost segregation studies.
STRVue does not determine your owner classification.
STRVue does not replace your CPA.

STRVue surfaces the federal tax math. You and your CPA make the decisions.

Private beta. Public launch Q3 2026.

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