Tax advantages of owning a STR...

[Louis Houette]

Most STR owners I speak to depreciate their property over 27.5 years and leave it at that. Curious how many people here have actually broken down the components of their property and accelerated anything?

Is this something your CPA has raised with you or is it rarely discussed?

[Christopher Tile]

@Louis Houette The building value of an STR is generally depreciated over 39 years (unlike the traditional 27.5 with LTRs).

If you get a cost segregation study done on the property, the assets will be split by 5/15/39 year assets, with the 5- and 15-year assets being eligible for bonus depreciation.

This is a heavily discussed topic, as a cost segregation is required in order to segregate the assets into the bonus depreciable classes and receive the tax benefits of bonus depreciation.

Feel free to reach out with any tax questions related to STRs