The Grand Strand draws over 20 million visitors annually — a tourism base that rivals any Florida market, with lower entry prices. SFRs and condos across Surfside Beach, Garden City, and Barefoot Landing run $250K–$800K, and furnished STRs commonly pull $40K+ in annual revenue. Cost segregation typically accelerates $20K–$50K into Year 1 at the 37% bracket plus South Carolina's 6.5% state rate.
Myrtle Beach: 20 Million Visitors and Counting
The Grand Strand draws over 20 million visitors annually, making Myrtle Beach one of the most-visited destinations on the East Coast. The vacation rental market here is massive—from oceanfront condos along Ocean Boulevard to golf-course villas in Barefoot Landing and beach houses in Surfside Beach and Garden City. The median condo price in Horry County sits around $250,000, while single-family beach houses range from $350K to $800K depending on proximity to the ocean.
our Airbnb tax strategy guide →
If you own a Myrtle Beach vacation rental that generates $30,000-$80,000 in annual gross revenue, that's taxable income. A cost segregation study accelerates a significant portion of your depreciation deductions into Year 1, reducing your tax bill on that rental income immediately.
Myrtle Beach Real Estate Market Snapshot
$325,000
$300,000
$40,000
0.57%
Up to 6.5%
Below Average
Affordable beach STR market, high volume. Top investment areas: North Myrtle Beach, Surfside Beach, Garden City, Pawleys Island.
Source: Public assessor data, Zillow, AirDNA estimates. Values are approximate metro-area medians.
South Carolina's Favorable Tax Environment
South Carolina's top marginal income tax rate is 6.4% (on income over $16,040). The state conforms to federal depreciation rules, including 100% bonus depreciation. Combined federal + state, an investor in the 37% bracket faces approximately 43.4%. That means every $100,000 in accelerated depreciation saves roughly $43,400 in combined taxes.
Oceanfront condo improvements—tile flooring, kitchen cabinetry, bathroom vanities, appliances, light fixtures, balcony railings—are all 5-year property eligible for 100% bonus depreciation. Even a $250K condo can generate $20K-$35K in accelerated Year 1 deductions.
A Real Example: Oceanfront 2BR Condo in North Myrtle Beach
The property: A 2-bedroom, 2-bathroom oceanfront condo in North Myrtle Beach (28582), purchased in May 2023 for $385,000. Built in 2008. Fully furnished as a vacation rental, generating $48,000/year in gross revenue. The owner is a corporate manager in Charlotte with W-2 income of $210,000.
Without cost segregation: Depreciable basis (after 10% land for condo) is $346,500. Straight-line: $12,600 per year.
With cost segregation:
| Category | Amount | Year 1 Deduction |
|---|---|---|
| 5-Year Property (furniture, appliances, cabinetry, flooring, fixtures, decor) | $72,800 | $72,800 (100% bonus) |
| 15-Year Property (balcony improvements, parking lot share, landscaping share) | $10,400 | $10,400 (100% bonus) |
| 27.5-Year Property (remaining condo structure) | $263,300 | $9,575 (straight-line) |
| Total Year 1 Accelerated Deductions | $83,200 |
At a 40% combined rate, that's approximately $33,300 in estimated combined tax savings. The fully furnished vacation rental generates the highest reclassification percentage because all the furniture, kitchen equipment, and decor are 5-year property.
Myrtle Beach Area Investment Zones
North Myrtle Beach / Cherry Grove (28582): Oceanfront condos and beach houses. $250K-$600K. Strong summer rental income with growing shoulder-season demand.
Myrtle Beach Oceanfront (29577): High-rise condos from $200K-$450K. High density of vacation rentals with established management companies.
Surfside Beach / Garden City (29575, 29576): Family-oriented beach communities. Single-family beach houses $400K-$700K with pools, outdoor showers, and elevated decks—all reclassifiable.
Barefoot Landing / North Shore (29579): Golf-course condos and villas. $200K-$400K. Year-round golf tourism extends the rental season.
Pawleys Island / Litchfield (29585): Upscale end of the Grand Strand. Beach houses $500K-$1M+ with significant outdoor improvements.
100% Bonus Depreciation and Lookback
The OBBBA permanently restored 100% bonus depreciation. For Grand Strand investors who purchased in prior years, lookback studies via Form 3115 capture all missed accelerated depreciation in one year.
Related Reading
Getting Started
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Myrtle Beach Real Estate Market: Why Cost Segregation Makes Sense Here
Myrtle Beach is one of the most accessible beach STR markets on the East Coast, with investor-grade condos and vacation homes typically priced in the $250K-$450K range -- significantly below comparable resort markets like Hilton Head or the Outer Banks. The Grand Strand draws over 20 million visitors annually, supporting a massive vacation rental economy centered on oceanfront condos, golf course villas, and family-oriented beach houses. For many investors, Myrtle Beach represents the entry point into resort-market rental ownership.
South Carolina conforms to federal bonus depreciation and has a top income tax rate of just 6.4%. Myrtle Beach vacation condos are typically purchased fully furnished with kitchen equipment, linens, and beach gear -- all of which classify as 5-year or 7-year property under MACRS. This heavy FF&E concentration means a furnished Myrtle Beach condo often has 25-30% of its depreciable basis eligible for immediate acceleration, producing Year 1 tax savings that can cover several months of mortgage payments.
Estimated Year 1 Savings for Myrtle Beach Properties
| Property Type | Price | Est. Year 1 Tax Savings |
|---|---|---|
| Myrtle Beach SFR | $350K | $15K-$23K |
| Myrtle Beach Airbnb/STR | $375K | $22K-$34K |
| Myrtle Beach Duplex | $425K | $19K-$28K |
| Myrtle Beach Condo | $275K | $10K-$15K |
Estimates assume 100% bonus depreciation at the 37% federal bracket. Actual savings depend on property condition, age, and furnishing level.
Who Orders Cost Segregation in Myrtle Beach?
Myrtle Beach cost segregation clients are predominantly condo owners who purchased oceanfront or second-row units as vacation rental investments. Many are from North Carolina, Virginia, and Ohio -- states within a day's drive of the Grand Strand -- and they manage their units through property management companies like Vacasa or local firms. We also work with investors who own multiple condo units in the same building or resort complex and want to run studies across their entire portfolio in a single order.
Whether you own a $250K oceanfront condo in North Myrtle Beach or a $500K beach house in Surfside, a cost segregation study pays for itself many times over in Year 1 tax savings.
Also Serving Nearby Markets
We serve investors across South Carolina and nearby markets including Charleston, Hilton Head, and Outer Banks. See state-by-state tax rules →
How Much Can You Save in Year One?
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More from the Blog
Cost Segregation for Hilton Head Resort Rentals
Hilton Head Island vacation rental owners can accelerate $25K-$75K in Year 1 depreciation.
Cost Segregation for Airbnb Properties: A Complete Guide
How Airbnb and STR investors use cost segregation to accelerate $20K-$80K in depreciation.
Frequently Asked Questions
How much does a cost segregation study cost in Myrtle Beach?
Cost Seg Smart studies start at $495 for properties under $300K and $795 for properties up to $1M — the same price nationwide. There are no travel fees or site visit charges because the IRS does not require a physical inspection. Traditional firms in the Myrtle Beach market typically charge $3,000 to $10,000 for the same analysis.
What's the typical accelerated depreciation for a Myrtle Beach STR property?
Myrtle Beach investment properties typically reclassify 20-35% of depreciable basis into 5-year and 15-year MACRS categories through cost segregation. For a $350,000 STR property, that translates to roughly $26,000 in Year 1 tax savings at the 37% bracket. Short-term rentals tend toward the higher end of this range due to furniture, fixtures, and equipment.
Does South Carolina conform to federal bonus depreciation rules?
South Carolina generally conforms to federal bonus depreciation rules, meaning your accelerated depreciation deductions apply at both the federal and state level.
How fast can I get a cost segregation study for my Myrtle Beach property?
Under one hour from order to delivery. Cost Seg Smart reports are generated using the same RSMeans construction cost data and IRS classification methodology as traditional firms — but delivered in minutes instead of weeks. No scheduling, no site visit, no waiting 4-8 weeks. Your CPA-ready report with MACRS depreciation schedules is emailed immediately after ordering.
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