LIMITED-TIME OFFER: Save $100 on your cost segregation study — now $1,199 per property.

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LIMITED-TIME OFFER: Save $100 on your cost segregation study — now $1,199 per property. 〰️

Your rental’s biggest tax break, delivered in 2 business days.

IRS-compliant, audit-supported cost segregation studies.
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Turn Your Vacation Rental Into a
More Powerful Tax Strategy

Your rental property may contain thousands of dollars in assets that can be depreciated faster than the building itself. A property-specific cost segregation study identifies those components and provides the documentation your tax professional needs to evaluate accelerated depreciation deductions.

What is cost segregation?

Stop Waiting Decades to Claim Every Available Depreciation Deduction

Residential rental buildings are generally depreciated over 27.5 years. But many elements within and around a rental property may qualify for shorter 5-, 7-, or 15-year recovery periods.

A cost segregation study analyzes your property and separates qualifying components from the building structure. Depending on your property, placed-in-service date, tax situation, and applicable law, this can move a larger portion of available depreciation into earlier years.

Potential shorter-life components may include:

  • Appliances, carpeting, certain fixtures, and decorative lighting

  • Cabinetry and certain equipment

  • Landscaping, fencing, driveways, patios, and other land improvements

  • Qualifying electrical, plumbing, and specialty property components

The building structure and nonqualifying components remain on their applicable longer depreciation schedules.

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Already owned the property for years?

You May Still Be Able to Catch Up Missed Depreciation

A look-back cost segregation study may identify depreciation that could have been claimed in prior years. In appropriate situations, a tax professional may use IRS Form 3115 to request an accounting-method change and recognize an eligible catch-up adjustment without amending every prior return.

The cost segregation study supplies the property analysis and supporting schedules. Form 3115 preparation and filing must be handled by your qualified tax professional unless separately arranged.

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Who may be a good fit?

This service may be worth exploring if you:

  • Own an Airbnb, Vrbo, vacation rental, or other income-producing property

  • Purchased, constructed, renovated, or placed a rental in service

  • Plan to hold the property and want to improve near-term cash flow

  • Have sufficient taxable income or expect to use available deductions

  • Bought the property in an earlier year and have not completed a cost segregation study

  • Want clear supporting documentation for your tax professional

Not every owner will receive the same benefit. We recommend discussing eligibility, loss limitations, bonus depreciation, and recapture with your CPA or tax advisor before proceeding.

Frequently Asked Questions

  • Cost segregation can apply to many income-producing properties, including short-term rentals, single-family rentals, condominiums, townhomes, and small multifamily properties. The property must be used for rental or business purposes; a personal residence does not qualify merely because it is owned.

  • Plan to provide the property address, purchase and placed-in-service information, closing documents, available appraisals or inspection reports, interior and exterior photos, and details of renovations or improvements.

  • Many residential studies can be completed remotely using owner-provided documents and photos together with available property data. If anything additional is needed, you will be contacted.

  • The estimated turnaround is usually 2 business days. Delivery timing begins after complete information and payment are received and may vary based on the property and current volume.

  • Send it to your CPA or tax preparer. They will determine how the results should be reported on your tax return and whether any additional forms are required.

  • Possibly. A look-back study may support a catch-up adjustment through Form 3115. Your tax professional must determine whether this treatment is appropriate and prepare the required filing.

  • Accelerated depreciation can affect depreciation recapture when a property is sold. The timing benefit may still be valuable, but it should be evaluated as part of your overall tax and investment strategy.

  • No. Results vary based on the property, depreciable basis, applicable tax law, and the owner’s individual tax situation.

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Disclaimer: Desert Oasis Retreats does not provide legal, tax, or accounting advice. Information on this page is educational and is not a guarantee of eligibility, deductions, tax savings, or future results. Tax laws and individual circumstances vary. Consult a qualified CPA, tax attorney, or tax advisor before acting. A cost segregation study is an engineering-based property analysis; tax-return preparation, Form 3115 preparation, and tax filing are not included unless expressly stated in a separate written agreement. Any audit support is limited to questions about the study’s methodology and calculations and does not include legal representation or tax-return defense.