As a CPA, why would you not also recommend she divide up the component costs of the renovation(ie cost of cabinets, floors, etc) into separate depreciable components, getting 80-90% of the benefit of a renovation cost seg without the cost?

For newly constructed, purchased or renovated properties and also retroactive generally over the last 10 years, building components are properly classified into individual units of property and accurate recovery periods for computing depreciation deductions.

Appreciation is a essential component and could be detrimental if you don’t buy right.Meaning, CapEx expenses could wipe away cash flow on a lower class asset and cause your first investment to be stressful.Now, you must ensure it cash flows upon your exit.

Detailed studies break down every component for maximum depreciation ($3,000–$10,000).

A cost segregation study basically separates your property into components that can be depreciated faster than the standard 27.5-year schedule.

It accurately breaks down components, ensuring investors capture every available accelerated depreciation deduction and fully capitalize on the returning bonus depreciation benefits.

After 5 years of searching for a STR that had what I considered the components needed for success:  vacation/tourist location and seasons, property curb appeal, size and etc.

He told me since I just bought this building; I can depreciate the components or something.

I standardized all major renovation components in 2017.

A study can identify and reclassify components, often accounting for 20-30% of the property's basis, into shorter depreciation schedules (5, 7, or 15 years), and often includes 100% bonus depreciation.