Updated 5 days ago on . Most recent reply
Bonus Depreciation house hack STR
Hi everyone! We recently had our first STR over the summer of 2025 which was in the basement of our current residence. We converted the walk out basement and added a kitchen and renovated. Now that it is tax season, we were told to do a cost seg by our agent who is an investor and saw lots of posts and podcasts about it, and then give it to our CPA to claim 100% bonus depreciation for 2025 on the property.
We paid for the cost seg and sent it over, but our CPA is saying that since it was our primary residence for the entire year, and we only rented it for the summer as a STR, that it would only qualify for around 25% bonus depreciation. Has anyone run into this before, I know the whole bonus depreciation is semi new but everything we heard about sounded like a great tax strategy, weird to see that us living here seems to be a detriment to that strategy. Thanks in advance for your replies.