All Forum Posts by: Josh Madigan

I'm seeking clarification on whether my short-term rental property qualifies for 100% bonus depreciation under the One Big Beautiful Bill Act (OBBBA) or is limited to 40% bonus depreciation. I purchased the property, a single-family home used as an Airbnb with average stays of 7 days or less and significant services (e.g., daily cleaning), in December 2024 and placed it in service in May 2025.

I've encountered conflicting information about the OBBBA’s cutoff date for 100% bonus depreciation:

• Some sources suggest the property must be both acquired and placed in service after January 19, 2025, making it ineligible due to the December 2024 purchase (and thus limited to 40% for early 2025).
• Others indicate that the placed-in-service date (May 2025) determines eligibility for the 100% rate, regardless of the acquisition date.

I understand the structure (likely 39 years as nonresidential real property) is ineligible, but components like furniture and landscaping (5-15 years) may qualify with a cost segregation study. Can anyone confirm which cutoff applies and whether my May 2025 placed-in-service date qualifies components for 100% bonus depreciation? Citations to IRS guidance or OBBBA-specific sources would be appreciated.

 I did see it and scheduled the sprinkler installation but heard they are now requiring additional improvements that weren't originally discussed like multiple egresses, changes to pool room doors etc.  

Thanks for the response, this makes sense.  I've scheduled my sprinkler install and working on the egress.  

Do they schedule the inspections ahead of time or just show up randomly and unannounced?

My calendar is booked with large groups for the next 6 months they are expecting me to cancel all of those bookings? 

I own a 6br pool cabin that sleeps 20+ and am going through the process of adding sprinkler system to bring it up to code for >12 occupancy.  However I just received a very concerning letter from the Fire Marshall Office saying I need to provide a notarized letter within 5 days stating I will not have more than 12 occupants in the cabin until I change the Certificate of Occupancy which would be devastating to my bookings.  Are they actually going to start enforcing this?

Does anyone know what else needs to be done to change the certificate of occupancy from less than 12 to greater than 12 besides the sprinkler installation and has anyone successfully gone through this process?

I own a second home on a large piece of property.  I plan on subdividing a portion of it and building a single family home on this new parcel.  I believe this home will increase in value over time, so am considering it a "spec" home.  I also plan on letting guests and family stay in the newly constructed spec home before it is sold.  Which leads me to my questions:

- My lender tells me I will need an investment mortgage on this property, does that mean I will be able to deduct interest exp/taxes/operating losses  etc against other passive real estate income from other rental properties i own?

- Any other tax implications I should be considering?

Thanks for your help

Are people still using MyLodgeTax to pay the small tax that isn’t remitted by Airbnb/Vrbo?

What types of pots and pans does everyone use in their rentals? Non stick or stainless? Cheap/middle/or higher end? 

*Must file for an exemption for each property.

I own 2 properties in the Smokies, each in their own single member LLC. I applied for the FONCE Exemption about a month ago and successfully received my exemption about two weeks later. Must file for exemption every year.