That means more of your cash stays in your business, not the IRS’s pocket.For many buyers in this market the ability to offset income and reinvest tax savings is a major advantage — and it strengthens your underwriting.Since STRs have strong appeal (friends & family groups, weekend escapes, high-end amenities) the sooner you position it as a business, the better your financial outcome.Your Step-By-Step Playbook for Cost SegregationHere’s a practical checklist to make cost segregation work for you in an STR:Buy/underwrite with tax strategy in mind: When you evaluate a property, include cost segregation as part of your operating model (not just nightly rate and occupancy).Engage a cost segregation specialist: You’ll want a qualified provider who understands STRs (they’ll allocate assets into proper shorter lives, document everything).Structure operations for “business” treatment: Track participation (guest communication, property maintenance, marketing) to lean into non-passive income treatment.Conduct the study early: Ideally in the year you take service (purchase or major renovation) so you front‐load benefits.Keep detailed records: Invoices, improvement costs, design/furnishing upgrades, hours spent managing.

Keep the installation invoice, permit info if applicable, and the retest report in your disclosure packet so the next buyer sees “issue found, fixed, verified.”

Once actual invoices come in, you typically can’t charge more than what you initially withheld without strong justification.

This place is pretty dang rough, to put it nicely. 

It sounds like they found a problem, fixed it, and got it re-certified.Here's the massive red flag.I emailed my contact at the turnkey company and asked for the documents to back this up specifically, the invoices, scope of work, and the transferable warranty if any for those "foundation repair efforts."

Sure, there is variations where ones carpet is a bit cheaper and windows a bit more, but the next is opposite, and in the end most wash out to being pretty dang close to par with each other.

I am sending rent invoices and they are directly depositing the rent from their checking account to mine.- They had their corporate counsel review the lease and request a few changes.

Quote from @Case Mccarthy: I would say that you can verify these landscape items, and other exterior repairs by getting the invoice from the PM, getting a cleared check or payment and also yearly getting photos of the place by the property manager.  

.🧤 Property Improvement Drives: Donating old appliances, furniture, or materials from renovations to nonprofit organizations like Habitat for Humanity can qualify as a charitable deduction.Pro Tip:Before December 31st, review your receipts, invoices, and bank statements.

You’ve got three levers; pick the one that funds the highest‑ROI work with the least risk. 0% cards are fine for bite‑size, invoiceable items if you can pay them off before the promo ends.