Short-Term Rentals
Lower Your Taxes and Increase Cash Flow
Cost segregation helps owners of short-term rental property (Airbnb, VRBO, Booking.com, etc.) significantly accelerate depreciation and increase cash flow by identifying and reclassifying specific property components into shorter-lived asset categories. The additional deductions may then be used to offset ordinary income (such as W-2 wages), not just rental income.
An engineering-based cost segregation study provides the documentation needed to withstand IRS scrutiny while unlocking bonus depreciation and immediate tax savings. Whether the property is newly acquired or has been owned for years, cost segregation can optimize depreciation and improve after-tax returns—without changing day-to-day operations.
Cost Segregation for Short-Term Rentals
$750k
Beach House acquisition in 2025
25%
Property identified to reclassify for shorter depreciable lives
$210k
Depreciation increase in first 5 years of ownership compared to the standard depreciation without a study
$74k
Additional cashflow over the first 5 years of ownership
Save thousands in taxes with a Cost Segregation study.
Our Cost Segregation Benefit Calculator makes it easy to know how much you could potentially benefit from a cost segregation study – and whether pursuing will add substantial cashflow to your investment.
Simply fill out the form below, and your estimate will be sent straight to your inbox.
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Hull & Knarr Experience
01
FEASIBILITY
Estimate of potential benefits for specific buildings. Our team identifies the property owner’s tax position and significant property characteristics to estimate study benefits.
02
GATHER
Next, our team collects documents like appraisals, property condition reports, ALTA surveys, closing purchase documents, blueprints, vendor reports, and/or construction documents.
03
ANALYSIS
After the standard data collection, we we conduct an on-site tour, examine relevant documents, classify cost information, including personal property and land improvements.
04
Arrive
At this point, we create a comprehensive report, including study results, methodology, property photos, and tax law support. This report becomes the basis of your audit defense.
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