COST SEG SMART
STR Deductions Checklist
12 STR Tax Deductions
Most Hosts Miss

If you own an Airbnb or vacation rental, you're likely missing $20K–$80K in deductions.

Why This Matters
Cost segregation is responsible for 70–80% of total accelerated savings for most STR owners.
The Big 3
These account for the majority of your tax savings
1
Cost Segregation
Reclassifies building components from 27.5-year to 5/7/15-year MACRS lives. With 100% bonus depreciation, the reclassified amount is fully deductible in Year 1.
$20K–$80K in Year 1
2
Bonus Depreciation — 100% in Year 1
The One Big Beautiful Bill Act (2025) permanently restored 100% first-year bonus depreciation. All reclassified components from your cost seg study can be fully deducted in the placed-in-service year.
3
Material Participation — Offset W-2 Income
If you materially participate in your STR (average rental <7 days, 100+ hours/year), losses including accelerated depreciation can offset your W-2 and other active income — no passive activity limitation.
Other Deductions You May Be Missing
Items 4–12: check each one you're claiming
4. Startup costs
Furnishing, setup, staging. Amortize or deduct up to $5K in Year 1.
5. Furnishings & FF&E
5-year or 7-year MACRS property. Often captured in your cost seg study.
6. Professional photography
Business expense, fully deductible in the year incurred.
7. Management software
PriceLabs, Hospitable, Guesty, etc. Deductible business expense.
8. Cleaning & maintenance
Turnover cleaning, repairs, supplies — all deductible.
9. Insurance premiums
STR-specific policies, liability, umbrella coverage.
10. Travel to property
Mileage (70¢/mi for 2025), airfare, lodging for management visits. Keep a log.
11. Home office deduction
If you manage your STR from a dedicated home workspace.
12. Professional fees
CPA, legal, cost seg study itself — all deductible business expenses.
costsegsmart.com    [email protected]
Page 1 of 2
COST SEG SMART
STR Deductions Checklist
Estimated Year 1 Tax Savings · $500K STR
~$50,000
At 37% federal rate · 100% bonus depreciation (OBBBA, 2025+)
Why Cost Seg Is the Biggest Lever
Items 4–12 are worth hundreds to low thousands each.
Cost seg is worth tens of thousands.

Most STR owners miss $30K–$60K in deductions from cost segregation alone. A study from Cost Seg Smart starts at $795 and typically delivers a 30–60x return on investment. STRs typically see higher savings than standard rentals due to more furnishings and shorter-life components.

✅ Can you use cost seg to offset W-2 income?
You actively manage your STR (or your management company acts on your behalf)
You materially participate (100+ hours/year and more than any other individual)
Average guest stay is under 7 days (short-term rental classification)
You own the property (or have a depreciable interest via partnership/LLC)

If you check all four, accelerated depreciation from cost seg can offset your W-2 and other active income. Other material participation tests may also apply — consult your CPA to confirm your status.

How It Works
Three steps to accelerated depreciation
1
Get Your CPA-Ready Report
Provide property details online. No site visit required.
2
Receive Your Report
35+ page CPA-ready PDF delivered in under 1 hour.
3
File & Save
Your CPA files Form 4562 or 3115. You claim the deduction.
See your estimated Year 1 tax savings in 60 seconds
costsegsmart.com — no email or signup required
Studies from $795
costsegsmart.com    [email protected]
© 2026 Cost Seg Smart · Page 2 of 2
Cost segregation accelerates the timing of depreciation deductions; total lifetime depreciation remains unchanged. For informational purposes only. Not tax advice. Based on IRS MACRS schedules (Rev. Proc. 87-56). Consult your CPA.