Unlock Hidden Tax Savings with Cost Segregation for Your Short-Term Rental

Intro

At HomeSlice Stays, we believe your short-term rental should be more than a beautiful property—it should be a powerful investment. One of the least understood, but most impactful, strategies available to STR owners is cost segregation. This approach allows you to accelerate depreciation on parts of your property, putting more money back in your pocket today instead of waiting decades for small deductions. Our team of seasoned professionals helps property owners make sense of their options and connect with the right experts so they can maximize savings without the stress.

Why Depreciation Matters for STR Investors

Every rental property owner knows expenses add up quickly—but what many don’t realize is how much depreciation can reduce taxes. Typically: - Residential rentals depreciate over 27.5 years - Commercial properties over 39 years The problem? Not all components of your property last that long. Carpets, appliances, landscaping, and even fencing wear out much sooner. Treating everything as if it lasts 30+ years means you’re missing out on significant deductions in the early years of ownership.

What Cost Segregation Really Does

Cost segregation is the process of breaking your property into pieces—and assigning shorter lifespans to many of those pieces. Instead of writing off your entire investment slowly over decades, you can accelerate portions like: - Carpeting, cabinets, and specialty lighting (5 years) - Furniture and fixtures (7 years) - Parking lots, pools, and landscaping (15 years) On average, a fifth to nearly half of a property’s value may qualify for these faster schedules. That means much larger write-offs when you need them most—during the critical early years of running your STR. 👉 Curious what that might look like for your home? Reach out to our team at HomeSlice Stays and we’ll help you model the savings.

Real Impact on Your Cash Flow

Let’s compare two scenarios for an $800,000 short-term rental: - Without cost segregation: roughly $20,000 in annual depreciation. - With cost segregation: potentially hundreds of thousands shifted into shorter timelines, creating tens of thousands more in deductions in year one alone. That translates directly into stronger cash flow, lower taxable income, and reinvestment power.

Why You Shouldn’t Go It Alone

Some investors try a “rule of thumb” approach—estimating which assets qualify and applying generic formulas. While this might shave a bit off your taxes, it carries a higher audit risk and often leaves money on the table. A professional, engineering-based study does the opposite: - Provides IRS-compliant reports - Documents your property with detailed inspection and records - Minimizes risk while maximizing deductions 👉 At HomeSlice Stays, we guide our clients toward trusted professionals who specialize in STR-focused cost segregation—so you can feel confident your study will stand up under scrutiny.

Timing Is Key

The best time to commission a cost segregation study is when you: - Purchase a property - Build or renovate a rental - Or want to perform a look-back study to capture missed deductions on past purchases With bonus depreciation dropping each year (40% in 2025, 20% in 2026, then gone entirely in 2027), now is the time to act if you want the biggest benefit.

Partner with Professionals Who Understand STRs

At HomeSlice Stays, we know the STR industry inside and out. Our role goes beyond property management—we help owners unlock financial strategies that fuel long-term growth. Whether you’re buying your first rental or scaling a portfolio, cost segregation can be a game-changer when paired with the right guidance. 👉 Let’s talk. Connect with our team today and discover how cost segregation can work for your short-term rental. We’ll connect you with the right professionals and help you understand how this strategy fits into your larger investment goals.