$750K Airbnb: Your Cost Segregation Breakdown

Higher-end Airbnb properties often feature premium finishes and extensive outdoor amenities — both categories that cost segregation captures aggressively.

$204,000 Accelerated Depreciation

$75,480 Est. Year-1 Tax Savings

95x Return on Study Cost

Adjust Your Numbers

Property Type

Purchase Price

Depreciable Basis (80%) $600,000

Accelerated Depreciation $204,000

Est. Year-1 Tax Savings $75,480

Study Cost $795

Return on Study 95x

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MACRS Depreciation Breakdown

MACRS Class	Amount	% of Accelerated	Bonus Eligible
5-Year Property	$142,800	70%	Yes — 100%
7-Year Property	$16,320	8%	Yes — 100%
15-Year Property	$44,880	22%	Yes — 100%
27.5yr Property	$396,000	66%	No — standard schedule
Total Depreciable Basis	$600,000	100%	—

Method	Year-1 Deduction	Difference
Standard Straight-Line (27.5yr)	$21,818	—
With Cost Segregation + Bonus	$204,000	+$182,182

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

A $750K Airbnb typically falls into the premium vacation rental category — think beachfront condos, ski chalets, or renovated historic homes in high-demand markets. These properties are disproportionately well-suited for cost segregation because their high finish levels and extensive furnishing packages mean a larger share of the purchase price sits in shorter MACRS recovery classes.

At this price point, the accelerated depreciation typically exceeds $200K. With 100% bonus depreciation, that entire amount can be claimed in the first year. The resulting tax savings of approximately $75K dwarfs the study cost of $795 — delivering nearly a 95x return on investment.

Investors at the $750K level are often high-income professionals using the STR loophole: by materially participating in their Airbnb (managing bookings, coordinating cleaners, handling guest communication), they can treat the rental as a non-passive activity. This allows the accelerated depreciation to offset W-2 or business income — the most powerful tax strategy available to real estate investors.

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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
$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

Compare: $750,000 Across Property Types

Property Type	Accelerated	Tax Savings	Study Cost	ROI
Airbnb / Short-Term Rental	$204,000	$75,480	$795	95x
Rental Property	$108,000	$39,960	$795	50x

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.

Is bonus depreciation available in 2026? ▼

Yes. The One Big Beautiful Bill Act permanently restored 100% bonus depreciation for property placed in service in 2025 and beyond. This means you can deduct the full amount of accelerated depreciation identified in your cost segregation study in year one.