STR Cost Segregation question

[Jeremy Muehlbauer]

So, we are looking at purchasing a triplex. We would ideally transition at least 1 of them over to a STR. My question is when it comes to the cost segregation study and how you can use the bonus depreciation against your W2 income with the short term loop hole. When they do the cost segregation study if only 1 of 3 of the units is being used as a STR and we are self managing the unit are we only able to write off the bonus depreciation from the 1 STR unit off against our W2 income or can we write off the entire amount of the buildings cost segregation? Any info on this would help, thanks.

[Jude Campbell]

Hi Jeremy.  Will preempt this by saying I'm not a CPA, though I have a general idea of how the IRS looks at these.

The only expenses you can write down under an exemption or tax deduction are expenses incurred solely from the one STR unit. You generally need to keep a separate log of expenses and in case of audit, they'll ask for something like this. You might also be able to list your time spent self-managing as an expense.

Jude