STR for Bonus Depreciation

[Tiffany Situ]

Interested in folks with STR bonus depreciation loophole experience - how close to the end of year were you able to STR your property? Were you able to claim the depreciation without any bookings?

Looking at an ideal out of state property, but we won’t be able to close until early December. We’re wondering if it’s enough to furnish and list, or if we need actual guest stays. Thanks in advance!

[Arman Ahmed]

@Tiffany Situ

Great question—bonus depreciation with STRs can be powerful, but it’s also one of those areas where details matter. From what I’ve seen with investors I work with in the Midwest, the IRS typically looks for the property to be “placed in service” before year-end. That usually means it needs to be fully furnished, available for rent, and actively listed—even if you don’t have any actual bookings yet. Still, the specifics can get tricky depending on your tax situation, so it’s worth running it by a CPA who has experience with STRs to make sure you maximize the benefit without any surprises.