$1.5M Airbnb: Your Cost Segregation Breakdown

A $1.5M luxury Airbnb generates over $400K in accelerated depreciation — the kind of tax savings that can reshape your financial year.

$408,000 Accelerated Depreciation

$150,960 Est. Year-1 Tax Savings

126x Return on Study Cost

Adjust Your Numbers

Property Type

Purchase Price

Depreciable Basis (80%) $1,200,000

Accelerated Depreciation $408,000

Est. Year-1 Tax Savings $150,960

Study Cost $1,195

Return on Study 126x

Order Your Study →

MACRS Depreciation Breakdown

MACRS Class	Amount	% of Accelerated	Bonus Eligible
5-Year Property	$285,600	70%	Yes — 100%
7-Year Property	$32,640	8%	Yes — 100%
15-Year Property	$89,760	22%	Yes — 100%
27.5yr Property	$792,000	66%	No — standard schedule
Total Depreciable Basis	$1,200,000	100%	—

Method	Year-1 Deduction	Difference
Standard Straight-Line (27.5yr)	$43,636	—
With Cost Segregation + Bonus	$408,000	+$364,364

Estimated deduction based on typical cost segregation allocations for airbnb / short-term rental properties. Actual study results may vary based on property-specific analysis including age, condition, renovations, and local construction costs.

What This Means for You

At $1.5M, a luxury short-term rental represents a significant investment — and cost segregation ensures you capture every available tax benefit. The typical study reclassifies approximately $408K into shorter MACRS classes, generating over $151K in first-year tax savings. Against a study cost of $1,295, that's a 116x return on investment.

Luxury STR properties at this price point typically feature extensive custom buildouts: chef's kitchens with commercial-grade appliances, resort-style pools with automated systems, outdoor entertainment areas, smart home automation throughout, custom millwork, designer furnishings, and premium landscaping. Each of these represents a reclassifiable component that traditional straight-line depreciation would spread over 27.5 years.

Investors at the $1.5M level are typically high-income professionals or serial STR operators building a portfolio. The tax strategy at this scale often involves coordinating cost segregation with entity structuring, material participation documentation, and year-end acquisition timing. Many investors in this bracket work directly with their CPA to time the purchase and study delivery to maximize the impact on their current-year tax return.

✅

IRS Compliant Methodology aligned with IRS Audit Techniques Guide

📈

CPA-Ready Reports 30-40 page PDF your CPA can file directly

💰

Money-Back Guarantee Full refund if the study doesn't save you money

📄

See a Sample Download sample report

Compare: Airbnb / Short-Term Rental at Different Price Points

Price	Accelerated	Tax Savings	Study Cost	ROI
$300K	$81,600	$30,192	$795	38x
$500K	$136,000	$50,320	$795	63x
$750K	$204,000	$75,480	$795	95x
$1M	$272,000	$100,640	$1,195	84x
$400K	$108,800	$40,256	$795	51x
$600K	$163,200	$60,384	$795	76x
$1.5M	$408,000	$150,960	$1,195	126x

Frequently Asked Questions

What is a cost segregation study? ▼

A cost segregation study is an engineering-based analysis that reclassifies components of your property into shorter IRS depreciation categories (5, 7, and 15 years) instead of the default 27.5 or 39 years. This accelerates your depreciation deductions, reducing your tax bill in the early years of ownership.

Why do Airbnbs get higher cost segregation deductions? ▼

Short-term rentals are typically furnished with furniture, appliances, electronics, linens, kitchenware, and décor — all of which qualify as 5-year personal property under MACRS. This FF&E (furniture, fixtures, and equipment) often represents 15-20% of the property's depreciable basis, significantly increasing the accelerated depreciation amount compared to unfurnished long-term rentals.

What about depreciation recapture when I sell? ▼

When you sell a property, the IRS recaptures accelerated depreciation at a maximum rate of 25%. However, the time value of money strongly favors taking the deduction now: $50K in tax savings today is worth far more than paying $12,500 in recapture tax years later. Additionally, a 1031 exchange can defer recapture indefinitely.