Furniture, appliances and removable equipment
AIRBNB AND VACATION RENTAL OWNERS
Reviewed August 17, 2026 · Updated for current federal bonus-depreciation guidance
A short-term rental can contain more than one tax life.
A furnished California short-term rental may combine residential building property with appliances, furniture, qualifying finishes, outdoor amenities and land improvements. A cost segregation study documents the supported allocation instead of treating the full building basis as one 27.5-year asset.
- ✓ No study work before payment
- ✓ CPA-ready final report
- ✓ California statewide
WHY IT MATTERS
Move eligible basis into faster recovery periods.
The study and the owner’s tax status are separate questions. Average guest stay, services provided, material participation, passive-loss limitations, acquisition date and placed-in-service date can all affect whether an accelerated deduction is currently usable. The engineering report supports classification; the CPA determines the return treatment.
Plain English: you are not creating a new deduction. You are identifying when supported pieces of the property may be depreciated.
WHAT WE REVIEW
What we review in a vacation rental
Flooring, cabinetry and qualifying interior finishes
Pools, spas, patios and outdoor recreation
Driveways, fencing, landscaping and site lighting
Renovations completed before or after launch
Purchase allocation and separately acquired furnishings
SHOW ME THE NUMBERS
Illustrative California STR example
Illustrative only. This assumes a 37% federal marginal rate where shown and that the owner can currently use the deduction.
- Property value
- $1,500,000
- Estimated depreciable basis
- $1,050,000
- Potential faster basis
- $210,000 to $368,000
- Potential upfront federal effect
- $78,000 to $136,000
- Study or comparison benchmark
- $5,000 to $10,000+
This is a timing illustration, not guaranteed permanent tax savings. California commonly requires a separate depreciation schedule because it generally does not conform to federal bonus depreciation.
DOES IT FIT?
Strong candidates usually have four things.
✓
Property is operating as a short-term rental
✓
Building and improvement basis supports the fee
✓
Owner has furnishing and renovation records
✓
CPA confirms loss and participation treatment
PORTFOLIO PRICING
More properties. Lower cost per study.
Order and pay for the properties together to receive a simple portfolio discount.
2 properties5% off3 to 4 properties10% off5+ properties15% off
STRAIGHT ANSWERS
Frequently asked questions.
Does the short-term-rental rule automatically make losses nonpassive?+
No. Tax treatment depends on the facts, including average stay, services and material participation. A cost segregation study does not establish participation or guarantee that a loss can offset other income.
Are furniture and appliances part of the study?+
They may be included when the owner has basis in them and they are not already listed separately on the fixed-asset schedule. The report must prevent duplicate basis.
Is the free estimate a completed study?+
No. It is an illustrative screen using the facts you provide. No engineering takeoff, professional certification or tax opinion is included. Technical work begins only after a signed and paid engagement.
Does my CPA need to approve the study first?+
No. It is smart to ask whether you can currently use additional depreciation, but the paid study does not require advance CPA approval. Your CPA makes the final filing decision.
Do you guarantee tax savings?+
No. A study accelerates the timing of eligible depreciation. Results depend on basis, property facts, placed-in-service dates, passive-loss rules, tax rates and the owner's filing position.
AUTHORITATIVE SOURCES
Reviewed against current IRS and California guidance.
Last reviewed August 17, 2026. Tax rules and procedures can change. Your CPA should confirm the law that applies to your acquisition date, placed-in-service date and return.
FREE PRELIMINARY PROPERTY SCREEN