Most STR analysis stops at cash flow. STRVue computes what actually determines your return — tax position, depreciation exposure, and after-tax equity IRR. Federal income tax only.
The federal income tax reduction generated in a given year by STR owner classification. Computed against your W-2 income using your marginal rate.
Applies to: Both paths (W-2 Active and REPS).
Example: A $400K property with cost segregation generating $60K in Year 1 depreciation at a 32% marginal rate produces a $19,200 Annual Tax Benefit.
The cumulative §1250 depreciation recapture exposure built up over your hold period. This is the deferred tax bill that comes due at sale — computed at the 25% recapture rate, not your marginal rate.
Applies to: Both paths.
Example: $80K in cumulative §1250 depreciation creates $20,000 in accrued recapture liability.
The only STRVue metric that is permanent and sale-independent. DRA captures the spread between your marginal tax rate and the 25% recapture rate — the portion of depreciation benefit you keep regardless of when or whether you sell.
Formula: Cumulative §1250 Depreciation × (Marginal Rate − 25%). Requires marginal rate above 25%. At or below 25%, DRA is zero.
Applies to: Both paths.
Example: $80K cumulative depreciation at 32% marginal rate: $80,000 × (32% − 25%) = $5,600 permanent, non-recaptured benefit.
The relationship between your accrued recapture liability and the offsetting factors that reduce its net impact — including appreciation, principal paydown, and remaining depreciation runway.
Applies to: Both paths.
Example: $20K recapture liability offset by $35K in appreciation gives a coverage ratio above 1.0 — liability is covered.
The specific threshold — expressed as a property value or hold year — at which your recapture liability becomes fully covered by offsetting factors. A forward-looking decision tool.
Applies to: Both paths.
Example: Coverage Point reached in Year 4 means you should not sell before Year 4 without understanding the net tax cost.
The comprehensive after-tax internal rate of return for the property owner. Incorporates cash flow, tax benefit, principal paydown, appreciation, and recapture liability. This is the number that answers: what did this property actually return?
Applies to: Both paths.
Example: A property showing negative cash flow can produce a positive True Owner Return once tax benefit and equity growth are included.
STRVue computes all six metrics for both owner classification paths. Your inputs determine which path applies to your situation.
You earn W-2 income, materially participate in your STR, and qualify under the STR exception to passive activity rules. The $150K W-2 income threshold does not apply to this path.
You qualify as a Real Estate Professional under IRC §469(c)(7). No W-2 income threshold. Full passive loss offset against ordinary income.
STRVue does not determine which path you qualify for. That is a tax question for your CPA.
These metrics compute federal income tax position only. State income tax, transfer taxes, and local assessments are outside scope.
STRVue does not advise. STRVue does not file. STRVue does not give a recommendation.
These metrics are analytical outputs based on inputs you provide. Verify all tax positions with a qualified CPA before acting.