Can I use bonus depreciation?

Depreciation (and a cost seg/bonus) is tied to when it’s actually placed in service as a rental, not when you lived in it.

That's when it hit me: profit sharing and per-deal compensation would be the most effective approach.I keep reminding my team that, as you continue to grow, a combination of salary and bonuses becomes more viable.As our business started booming and the cash flow got juicier, I knew it was time for a compensation makeover.

>any STR property put into service in 2025 (after Jan 20) is eligible for 100% bonus depreciationOBBB requires the property to have been placed under contract after Jan 19, 2025.

Since the property was bought in 2024, you’d get 60% bonus depreciation, not 40%.

Does bonus depreciation only apply to short-term rentals, or can you also take advantage of it with medium-term rentals?

Cost segregation and bonus depreciation aren’t creating new expenses/tax deductions.

We’ve always been long-term, buy-and-hold investors, we’ve got about 75 units, mostly single family and small multifamily here in central Arkansas. But like a lot of folks, we dipped our toes into the short-term renta...

Getting to include 1245 property back into the 1031 is just a happy bonus!

If you place it on Airbnb, get guests in, and complete a cost segregation study, you can take bonus depreciation against W2 income as long as you meet the hour requirements.The key parts are: buying the property, putting it in service, tracking your hours, and getting the cost seg report done in time.