Cost segregation studies for Airbnb and short term rental properties. Learn how the STR loophole lets W-2 earners offset active income with accelerated depreciation.
Short term rental properties with an average guest stay of 7 days or less are not treated as rental activities under IRS rules. When the owner materially participates, losses from accelerated depreciation can offset W-2 and other active income. This is one of the most powerful tax strategies available to high-income earners.
Furnished short term rentals typically achieve higher reclassification rates (25-40%) because furniture, appliances, decor, and guest amenities all qualify as 5-year personal property. The more furnishings in the unit, the more basis can be accelerated.