Short-Term Rental Cost Segregation Case Study | $330,000 in Year One

Study Summary

A $1,100,000 short-term rental placed in service in February 2026, studied for the 2026 tax year.

Without a study, the owner would depreciate the full cost basis as 39 year property. Our engineers identified 30% of it as 5 and 15 year property. With 100% bonus depreciation, that $330,000 was deducted in the first year, and at a 37% tax rate it added $122,100 to the owner’s cash flow in year one.

Property type: Short-term rental
Cost basis: $1,100,000
Placed in service: February 2026
Tax rate: 37%
Bonus depreciation: 100%

$330,000
Accelerated depreciation, deducted in year one
$122,100
Additional cash flow in year one at a 37% tax rate
$28,205
Year-one deduction without a study, straight-line over 39 years
$349,744
Year-one deduction with the study, more than 12 times as much

Where the $1,100,000 Went

5 year property
Personal property such as fixtures, furnishings and certain finishes
$198,00018%
15 year property
Land improvements such as paving, landscaping and outdoor features
$132,00012%
39 year property
The building structure, left on the standard schedule
$770,00070%

Year-one figures are simplified: straight-line divides the basis evenly over 39 years and leaves out the mid-month convention. Results depend on your property.

Cost Segregation Results by Property Type

Accelerated depreciation is the part of the price our engineers moved onto 5, 7 and 15 year schedules. Select a study to see its full numbers.