$450K Airbnb: Your Cost Segregation Breakdown

A furnished short-term rental at $450K sits in the sweet spot for cost segregation ROI. The FF&E — furniture, smart TVs, kitchen equipment, linens — drives the 5-year category well above unfurnished rentals.

$122,400Accelerated Depreciation

$45,288Est. Year-1 Tax Savings

57xReturn on Study Cost

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Property Type

Purchase Price

$95,105

Estimated Year-1 Tax Savings

$122,400

Accelerated Deductions

$795

Study Cost

57x

ROI on Study

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Estimates are for illustration only. Details

MACRS Depreciation Breakdown

Accelerated Depreciation by MACRS Class

Total reclassified from standard depreciation

5-Year Property$85,680

23.8%

7-Year Property$9,720

2.7%

15-Year Property$27,000

7.5%

27.5-Year Property$237,600

66.0%

Estimated Year-1 Tax Savings$95,105

Illustrative estimate. Final allocations vary based on property facts and report findings.

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

$450K furnished Airbnb rental with accelerated depreciation from a cost segregation study

A $450K Airbnb is a common investment in markets like the Smoky Mountains, Gulf Coast, and Ozarks. At this price point, you are typically looking at a 3-bedroom, 1,600 SF home built between 2000 and 2015, furnished for guest stays with quality furniture, full kitchen equipment, and entertainment systems.

The furnished nature of STRs is what drives the accelerated depreciation numbers well above unfurnished rentals. Bedroom furniture sets, living room furnishings, dining tables, smart TVs, washer/dryer units, coffee makers, outdoor furniture, fire pits, and hot tubs all fall into the 5-year MACRS class. Driveways, walkways, patios, outdoor lighting, and landscaping qualify for 15-year treatment.

If you materially participate in your STR operation — managing bookings, handling guest communications, coordinating cleaners — the IRS classifies the income as non-passive. That means the $45K in year-one tax savings comes directly off your W-2 or business income, not just your rental income.

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

Price	Accelerated	Tax Savings	Study Cost	ROI
$300K	$81,600	$30,192	$795	38x
$400K	$108,800	$40,256	$795	51x
$450K	$122,400	$45,288	$795	57x
$500K	$136,000	$50,320	$795	63x
$700K	$190,400	$70,448	$795	89x
$1M	$272,000	$100,640	$1,295	78x

Frequently Asked Questions

How much can I save with cost segregation on a $450K Airbnb?▼

A $450K short-term rental typically yields approximately $122,400 in accelerated depreciation, generating roughly $95,105 in year-one tax savings at the 37% bracket.

Why do Airbnbs get higher cost segregation deductions?▼

Short-term rentals are typically furnished with furniture, appliances, electronics, linens, kitchenware, and decor — all qualifying as 5-year personal property under MACRS. This FF&E often represents 15-20% of the property's depreciable basis.

What is material participation and why does it matter?▼

Material participation means you are actively involved in your rental operation. If you spend 100+ hours and nobody else spends more time than you, the IRS treats your rental as non-passive, allowing you to deduct accelerated depreciation against W-2 or business income.