Park City: Where Ski-Season Revenue Meets Year-Round Tax Strategy
Park City, Utah is one of the premier ski destinations in North America—home to Park City Mountain Resort and Deer Valley. The town draws visitors year-round for skiing, Sundance Film Festival, summer mountain biking, and the Olympic legacy from 2002. Property values reflect that demand: the median home price in Summit County exceeds $1.2M, and ski-in/ski-out condos in Deer Valley or Canyons Village range from $800K to well over $3M.
Many Park City properties operate as short-term rentals during ski season and summer months, generating $80,000-$200,000+ in annual gross revenue. That rental income is taxable, and if you're depreciating the property over 27.5 years, you're spreading deductions across nearly three decades instead of front-loading them.
Utah's 4.65% Flat Tax
Utah charges a flat 4.65% state income tax and conforms to federal depreciation rules, including 100% bonus depreciation. Combined federal + state, the marginal rate for high-earning investors is approximately 41.65%.
Park City ski properties often have significant 15-year improvements: hot tubs, fire pits, heated driveways, exterior lighting, ski storage areas, and extensive landscaping. Combined with fully furnished interiors, these properties see some of the highest reclassification percentages in the residential market.
A Real Example: 4BR Ski Condo in Canyons Village
The property: A 4-bedroom, 3.5-bathroom ski-in/ski-out condo in Canyons Village (84098), purchased in January 2023 for $1,350,000. Built in 2007. Fully furnished with high-end furnishings, ski lockers, hot tub on the deck, and heated boot room. Generates $145,000/year in STR revenue. The owner is a tech executive in San Francisco with W-2 income of $550,000.
Without cost segregation: Depreciable basis (after 15% land for condo) is $1,147,500. Straight-line: $41,730 per year.
With cost segregation:
| Category | Amount | Year 1 Deduction |
|---|---|---|
| 5-Year Property (furniture, appliances, cabinetry, flooring, fixtures, hot tub, electronics) | $241,000 | $241,000 (100% bonus) |
| 15-Year Property (deck, exterior lighting, heated walkways, landscaping) | $57,400 | $57,400 (100% bonus) |
| 27.5-Year Property (remaining condo structure) | $849,100 | $30,880 (straight-line) |
| Total Year 1 Accelerated Deductions | $298,400 |
At 37% federal, the federal savings alone are approximately $110,400. If the owner lived in Utah, the combined savings would approach $124,400 with the state benefit.
Park City Investment Areas
Deer Valley (84060): Ultra-premium ski condos and homes. $1.5M-$5M+. The highest nightly rates in Utah.
Canyons Village (84098): Ski-in/ski-out condos. $800K-$2M. Strong rental management infrastructure through Vail Resorts.
Old Town / Historic Main Street (84060): Walk-to-lift condos and townhomes. $600K-$1.5M. Sundance Film Festival proximity drives January demand.
Kimball Junction / Jeremy Ranch (84098): More affordable properties near the outlets. $500K-$900K. Growing STR market.
Heber City / Midway (84032, 84049): The "back side" of the Wasatch. Properties $400K-$700K with growing STR demand.
100% Bonus Depreciation and Lookback
The OBBBA permanently restored 100% bonus depreciation. Lookback studies via Form 3115 capture missed accelerated depreciation for properties purchased in prior years.
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